Correlation Between State Street and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both State Street and Fidelity Advisor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining State Street and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Global and Fidelity Advisor Technology, you can compare the effects of market volatilities on State Street and Fidelity Advisor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in State Street with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Fidelity Advisor.
Diversification Opportunities for State Street and Fidelity Advisor
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Fidelity is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding State Street Global and Fidelity Advisor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Tec and State Street is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on State Street Global are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Tec has no effect on the direction of State Street i.e., State Street and Fidelity Advisor go up and down completely randomly.
Pair Corralation between State Street and Fidelity Advisor
Assuming the 90 days horizon State Street Global is expected to under-perform the Fidelity Advisor. But the mutual fund apears to be less risky and, when comparing its historical volatility, State Street Global is 1.74 times less risky than Fidelity Advisor. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Fidelity Advisor Technology is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 13,683 in Fidelity Advisor Technology on September 3, 2024 and sell it today you would earn a total of 873.00 from holding Fidelity Advisor Technology or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Global vs. Fidelity Advisor Technology
Performance |
| Timeline |
| State Street Global |
| Fidelity Advisor Tec |
State Street and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Fidelity Advisor
The main advantage of trading using opposite State Street and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Fidelity Advisor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| State Street vs. Goldman Sachs Short | State Street vs. Great West Goldman Sachs | State Street vs. Fidelity Advisor Gold | State Street vs. Vy Goldman Sachs |
| Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Fidelity Advisor Semiconductors |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |