Correlation Between Crawford Dividend and Fidelity Advisor

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

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

Diversification Opportunities for Crawford Dividend and Fidelity Advisor

0.46

Correlation Coefficient

Crawford Dividend  Fidelity Advisor

Very weak diversification

The 3 months correlation between Crawford and FIDELITY is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Crawford Dividend Growth and Fidelity Advisor Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Floating and Crawford Dividend 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 Crawford Dividend Growth 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 Floating has no effect on the direction of Crawford Dividend i.e., Crawford Dividend and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Crawford Dividend and Fidelity Advisor

Assuming the 90 days horizon Crawford Dividend Growth is expected to generate 4.49 times more return on investment than Fidelity Advisor. However, Crawford Dividend is 4.49 times more volatile than Fidelity Advisor Floating. It trades about 0.08 of its potential returns per unit of risk. Fidelity Advisor Floating is currently generating about 0.07 per unit of risk. If you would invest  1,398  in Crawford Dividend Growth on December 28, 2024 and sell it today you would earn a total of  45.00  from holding Crawford Dividend Growth or generate 3.22% return on investment over 90 days.

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

Crawford Dividend Growth  vs.  Fidelity Advisor Floating

Crawford Dividend Growth

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crawford Dividend Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Crawford Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Advisor Floating

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Floating are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Crawford Dividend and Fidelity Advisor

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

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.