Correlation Between Fidelity Advantage and BetaPro SP

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

By analyzing existing cross correlation between Fidelity Advantage Ether and BetaPro SP 500, you can compare the effects of market volatilities on Fidelity Advantage and BetaPro SP 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 BetaPro SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and BetaPro SP.

Diversification Opportunities for Fidelity Advantage and BetaPro SP

0.0

Correlation Coefficient

Fidelity Advantage  BetaPro SP

Pay attention - limited upside

The 3 months correlation between Fidelity and BetaPro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Ether and BetaPro SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SP 500 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 Ether are associated (or correlated) with BetaPro SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SP 500 has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and BetaPro SP go up and down completely randomly.

Pair Corralation between Fidelity Advantage and BetaPro SP

If you would invest  0.00  in Fidelity Advantage Ether on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Fidelity Advantage Ether or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Fidelity Advantage Ether  vs.  BetaPro SP 500

Fidelity Advantage Ether

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Advantage Ether has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fidelity Advantage is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

BetaPro SP 500

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BetaPro SP 500 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Fidelity Advantage and BetaPro SP

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

The idea behind Fidelity Advantage Ether and BetaPro SP 500 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.