Correlation Between Fidelity Advisor and Fidelity Sai

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Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Fidelity Sai 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 Fidelity Advisor and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Growth and Fidelity Sai Short Term, you can compare the effects of market volatilities on Fidelity Advisor and Fidelity Sai 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 Fidelity Advisor with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Fidelity Sai.

Diversification Opportunities for Fidelity Advisor and Fidelity Sai

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Fidelity and Fidelity is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Growth and Fidelity Sai Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Short and Fidelity Advisor 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 Fidelity Advisor Growth are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Short has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Fidelity Sai go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Fidelity Sai

Assuming the 90 days horizon Fidelity Advisor Growth is expected to generate 10.77 times more return on investment than Fidelity Sai. However, Fidelity Advisor is 10.77 times more volatile than Fidelity Sai Short Term. It trades about 0.13 of its potential returns per unit of risk. Fidelity Sai Short Term is currently generating about -0.12 per unit of risk. If you would invest  13,230  in Fidelity Advisor Growth on September 29, 2024 and sell it today you would earn a total of  1,264  from holding Fidelity Advisor Growth or generate 9.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fidelity Advisor Growth  vs.  Fidelity Sai Short Term

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0510
JavaScript chart by amCharts 3.21.15FACGX FZOMX
       Timeline  
Fidelity Advisor Growth 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Growth are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec135140145
Fidelity Sai Short 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fidelity Sai Short Term has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Fidelity Sai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecDec9.679.689.699.79.719.729.739.749.75

Fidelity Advisor and Fidelity Sai Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.58-1.71-0.850.00.921.852.773.69 51015202530
JavaScript chart by amCharts 3.21.15FACGX FZOMX
       Returns  

Pair Trading with Fidelity Advisor and Fidelity Sai

The main advantage of trading using opposite Fidelity Advisor and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Fidelity Sai 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 Sai will offset losses from the drop in Fidelity Sai's long position.
The idea behind Fidelity Advisor Growth and Fidelity Sai Short Term 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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