Correlation Between Fidelity Advisor and International Small

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

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

Diversification Opportunities for Fidelity Advisor and International Small

0.04

Correlation Coefficient

Fidelity Advisor  International Small

Significant diversification

The 3 months correlation between Fidelity and International is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Health and International Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Small Pany 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 Health are associated (or correlated) with International Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Small Pany has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and International Small go up and down completely randomly.

Pair Corralation between Fidelity Advisor and International Small

Assuming the 90 days horizon Fidelity Advisor Health is expected to under-perform the International Small. In addition to that, Fidelity Advisor is 2.75 times more volatile than International Small Pany. It trades about -0.16 of its total potential returns per unit of risk. International Small Pany is currently generating about 0.02 per unit of volatility. If you would invest  1,018  in International Small Pany on December 3, 2024 and sell it today you would earn a total of  9.00  from holding International Small Pany or generate 0.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Fidelity Advisor Health  vs.  International Small Pany

Fidelity Advisor Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Advisor Health 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 fundamental 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.

International Small Pany

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in International Small Pany are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, International Small 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 International Small

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

The idea behind Fidelity Advisor Health and International Small Pany 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.

Check out your portfolio center.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.