Correlation Between Fidelity Advisor and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Astor Longshort 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 Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Technology and Astor Longshort Fund, you can compare the effects of market volatilities on Fidelity Advisor and Astor Longshort 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 Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Astor Longshort.
Diversification Opportunities for Fidelity Advisor and Astor Longshort
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and Astor is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Technology and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort 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 Technology are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Astor Longshort go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Astor Longshort
Assuming the 90 days horizon Fidelity Advisor Technology is expected to generate 1.74 times more return on investment than Astor Longshort. However, Fidelity Advisor is 1.74 times more volatile than Astor Longshort Fund. It trades about 0.06 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about -0.03 per unit of risk. If you would invest 13,442 in Fidelity Advisor Technology on September 26, 2024 and sell it today you would earn a total of 1,543 from holding Fidelity Advisor Technology or generate 11.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Advisor Technology vs. Astor Longshort Fund
Performance |
Timeline |
Fidelity Advisor Tec |
Astor Longshort |
Fidelity Advisor and Astor Longshort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advisor and Astor Longshort
The main advantage of trading using opposite Fidelity Advisor and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.Fidelity Advisor vs. Technology Portfolio Technology | Fidelity Advisor vs. Fidelity Select Semiconductors | Fidelity Advisor vs. Retailing Portfolio Retailing | Fidelity Advisor vs. It Services Portfolio |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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