Correlation Between Vanguard FTSE and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE and Fidelity Advantage 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 Vanguard FTSE and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard FTSE Developed and Fidelity Advantage Ether, you can compare the effects of market volatilities on Vanguard FTSE and Fidelity Advantage 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 Vanguard FTSE with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and Fidelity Advantage.
Diversification Opportunities for Vanguard FTSE and Fidelity Advantage
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and Fidelity is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Developed and Fidelity Advantage Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage Ether and Vanguard FTSE 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 Vanguard FTSE Developed are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage Ether has no effect on the direction of Vanguard FTSE i.e., Vanguard FTSE and Fidelity Advantage go up and down completely randomly.
Pair Corralation between Vanguard FTSE and Fidelity Advantage
Considering the 90-day investment horizon Vanguard FTSE Developed is expected to under-perform the Fidelity Advantage. But the etf apears to be less risky and, when comparing its historical volatility, Vanguard FTSE Developed is 6.75 times less risky than Fidelity Advantage. The etf trades about -0.12 of its potential returns per unit of risk. The Fidelity Advantage Ether is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,473 in Fidelity Advantage Ether on August 26, 2024 and sell it today you would earn a total of 819.00 from holding Fidelity Advantage Ether or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard FTSE Developed vs. Fidelity Advantage Ether
Performance |
| Timeline |
| Vanguard FTSE Developed |
| Fidelity Advantage Ether |
Vanguard FTSE and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and Fidelity Advantage
The main advantage of trading using opposite Vanguard FTSE and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE position performs unexpectedly, Fidelity Advantage 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 Advantage will offset losses from the drop in Fidelity Advantage's long position.| Vanguard FTSE vs. Dimensional Core Equity | Vanguard FTSE vs. Dimensional Emerging Core | Vanguard FTSE vs. Dimensional Targeted Value | Vanguard FTSE vs. Dimensional Small Cap |
| Fidelity Advantage vs. Grayscale Bitcoin Trust | Fidelity Advantage vs. Siren Nasdaq NexGen | Fidelity Advantage vs. Grayscale Bitcoin Mini | Fidelity Advantage vs. First Trust SkyBridge |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |