Correlation Between Fidelity Intl and Fidelity Advisor

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

By analyzing existing cross correlation between Fidelity Intl Sustainability and Fidelity Advisor Stock, you can compare the effects of market volatilities on Fidelity Intl and Fidelity Advisor 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 Intl with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Intl and Fidelity Advisor.

Diversification Opportunities for Fidelity Intl and Fidelity Advisor

-0.25

Correlation Coefficient

Fidelity Intl  Fidelity Advisor

Very good diversification

The 3 months correlation between Fidelity and Fidelity is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Intl Sustainability and Fidelity Advisor Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Stock and Fidelity Intl 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 Intl Sustainability are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Stock has no effect on the direction of Fidelity Intl i.e., Fidelity Intl and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Fidelity Intl and Fidelity Advisor

Assuming the 90 days horizon Fidelity Intl Sustainability is expected to generate 0.72 times more return on investment than Fidelity Advisor. However, Fidelity Intl Sustainability is 1.38 times less risky than Fidelity Advisor. It trades about 0.15 of its potential returns per unit of risk. Fidelity Advisor Stock is currently generating about -0.09 per unit of risk. If you would invest  1,218  in Fidelity Intl Sustainability on December 21, 2024 and sell it today you would earn a total of  91.00  from holding Fidelity Intl Sustainability or generate 7.47% return on investment over 90 days.

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

Fidelity Intl Sustainability  vs.  Fidelity Advisor Stock

Fidelity Intl Sustai

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Intl Sustainability are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fidelity Intl may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Fidelity Advisor Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Advisor Stock has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Fidelity Intl and Fidelity Advisor

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

The idea behind Fidelity Intl Sustainability and Fidelity Advisor Stock 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.