Correlation Between Artisan Select and Fidelity Advisor

Can any of the company-specific risk be diversified away by investing in both Artisan Select 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 Artisan Select and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Select Equity and Fidelity Advisor Sumer, you can compare the effects of market volatilities on Artisan Select 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 Artisan Select with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Fidelity Advisor.

Diversification Opportunities for Artisan Select and Fidelity Advisor

-0.15

Correlation Coefficient

Artisan Select  Fidelity Advisor

Good diversification

The 3 months correlation between Artisan and Fidelity is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Fidelity Advisor Sumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sumer and Artisan Select 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 Artisan Select Equity 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 Sumer has no effect on the direction of Artisan Select i.e., Artisan Select and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Artisan Select and Fidelity Advisor

Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.59 times more return on investment than Fidelity Advisor. However, Artisan Select Equity is 1.71 times less risky than Fidelity Advisor. It trades about 0.13 of its potential returns per unit of risk. Fidelity Advisor Sumer is currently generating about -0.2 per unit of risk. If you would invest  1,548  in Artisan Select Equity on December 22, 2024 and sell it today you would earn a total of  99.00  from holding Artisan Select Equity or generate 6.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Artisan Select Equity  vs.  Fidelity Advisor Sumer

Artisan Select Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Select may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Fidelity Advisor Sumer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Advisor Sumer has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Artisan Select and Fidelity Advisor

The main advantage of trading using opposite Artisan Select and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select 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.

The idea behind Artisan Select Equity and Fidelity Advisor Sumer pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.