Correlation Between Fidelity Sustainable and Atresmedia

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Can any of the company-specific risk be diversified away by investing in both Fidelity Sustainable and Atresmedia 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 Sustainable and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sustainable USD and Atresmedia, you can compare the effects of market volatilities on Fidelity Sustainable and Atresmedia 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 Sustainable with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sustainable and Atresmedia.

Diversification Opportunities for Fidelity Sustainable and Atresmedia

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Fidelity and Atresmedia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sustainable USD and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Fidelity Sustainable 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 Sustainable USD are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Fidelity Sustainable i.e., Fidelity Sustainable and Atresmedia go up and down completely randomly.

Pair Corralation between Fidelity Sustainable and Atresmedia

Assuming the 90 days trading horizon Fidelity Sustainable USD is expected to under-perform the Atresmedia. But the etf apears to be less risky and, when comparing its historical volatility, Fidelity Sustainable USD is 3.69 times less risky than Atresmedia. The etf trades about -0.29 of its potential returns per unit of risk. The Atresmedia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  452.00  in Atresmedia on October 7, 2024 and sell it today you would lose (1.00) from holding Atresmedia or give up 0.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Fidelity Sustainable USD  vs.  Atresmedia

 Performance 
       Timeline  
Fidelity Sustainable USD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fidelity Sustainable USD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fidelity Sustainable is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Atresmedia 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Atresmedia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Atresmedia is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Fidelity Sustainable and Atresmedia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Sustainable and Atresmedia

The main advantage of trading using opposite Fidelity Sustainable and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sustainable position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.
The idea behind Fidelity Sustainable USD and Atresmedia 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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