Correlation Between Fidelity Advisor and Fidelity Series

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

By analyzing existing cross correlation between Fidelity Advisor Sumer and Fidelity Series Emerging, you can compare the effects of market volatilities on Fidelity Advisor and Fidelity Series 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 Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Fidelity Series.

Diversification Opportunities for Fidelity Advisor and Fidelity Series

-0.57

Correlation Coefficient

Fidelity Advisor  Fidelity Series

Excellent diversification

The 3 months correlation between Fidelity and Fidelity is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Sumer and Fidelity Series Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Emerging 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 Sumer are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Emerging has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Fidelity Series go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Fidelity Series

Assuming the 90 days horizon Fidelity Advisor Sumer is expected to under-perform the Fidelity Series. In addition to that, Fidelity Advisor is 1.24 times more volatile than Fidelity Series Emerging. It trades about -0.2 of its total potential returns per unit of risk. Fidelity Series Emerging is currently generating about 0.09 per unit of volatility. If you would invest  884.00  in Fidelity Series Emerging on December 21, 2024 and sell it today you would earn a total of  50.00  from holding Fidelity Series Emerging or generate 5.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Fidelity Advisor Sumer  vs.  Fidelity Series Emerging

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 basic 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.

Fidelity Series Emerging

Risk-Adjusted Performance

OK

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

Pair Trading with Fidelity Advisor and Fidelity Series

The main advantage of trading using opposite Fidelity Advisor and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.

The idea behind Fidelity Advisor Sumer and Fidelity Series Emerging 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.