Correlation Between Fidelity Advisor and State Farm
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and State Farm 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 State Farm 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 State Farm Municipal, you can compare the effects of market volatilities on Fidelity Advisor and State Farm 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 State Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and State Farm.
Diversification Opportunities for Fidelity Advisor and State Farm
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and State is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Health and State Farm Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Farm Municipal 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 State Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Farm Municipal has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and State Farm go up and down completely randomly.
Pair Corralation between Fidelity Advisor and State Farm
Assuming the 90 days horizon Fidelity Advisor Health is expected to under-perform the State Farm. In addition to that, Fidelity Advisor is 14.45 times more volatile than State Farm Municipal. It trades about -0.27 of its total potential returns per unit of risk. State Farm Municipal is currently generating about -0.32 per unit of volatility. If you would invest 821.00 in State Farm Municipal on October 10, 2024 and sell it today you would lose (12.00) from holding State Farm Municipal or give up 1.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Advisor Health vs. State Farm Municipal
Performance |
Timeline |
Fidelity Advisor Health |
State Farm Municipal |
Fidelity Advisor and State Farm Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advisor and State Farm
The main advantage of trading using opposite Fidelity Advisor and State Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, State Farm 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 State Farm will offset losses from the drop in State Farm's long position.Fidelity Advisor vs. Fidelity Advisor Technology | Fidelity Advisor vs. Fidelity Advisor Biotechnology | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Utilities |
State Farm vs. State Farm Growth | State Farm vs. State Farm Balanced | State Farm vs. State Farm Interim | State Farm vs. State Farm International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Transaction History View history of all your transactions and understand their impact on performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |