Correlation Between Fidelity Advantage and Harvest Nvidia

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

By analyzing existing cross correlation between Fidelity Advantage Bitcoin and Harvest Nvidia Enhanced, you can compare the effects of market volatilities on Fidelity Advantage and Harvest Nvidia 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 Advantage with a short position of Harvest Nvidia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and Harvest Nvidia.

Diversification Opportunities for Fidelity Advantage and Harvest Nvidia

0.13

Correlation Coefficient

Fidelity Advantage  Harvest Nvidia

Average diversification

The 3 months correlation between Fidelity and Harvest is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and Harvest Nvidia Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Nvidia Enhanced and Fidelity Advantage 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 Advantage Bitcoin are associated (or correlated) with Harvest Nvidia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Nvidia Enhanced has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and Harvest Nvidia go up and down completely randomly.

Pair Corralation between Fidelity Advantage and Harvest Nvidia

Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to under-perform the Harvest Nvidia. But the etf apears to be less risky and, when comparing its historical volatility, Fidelity Advantage Bitcoin is 1.5 times less risky than Harvest Nvidia. The etf trades about -0.33 of its potential returns per unit of risk. The Harvest Nvidia Enhanced is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  914.00  in Harvest Nvidia Enhanced on December 4, 2024 and sell it today you would lose (1.00) from holding Harvest Nvidia Enhanced or give up 0.11% of portfolio value over 90 days.

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

Fidelity Advantage Bitcoin  vs.  Harvest Nvidia Enhanced

Fidelity Advantage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Advantage Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Harvest Nvidia Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harvest Nvidia Enhanced has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's technical indicators remain somewhat 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 ETF investors.

Pair Trading with Fidelity Advantage and Harvest Nvidia

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

The idea behind Fidelity Advantage Bitcoin and Harvest Nvidia Enhanced 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.