Correlation Between F45 Training and Fidelity Advisor

Can any of the company-specific risk be diversified away by investing in both F45 Training 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 F45 Training and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F45 Training Holdings and Fidelity Advisor Sumer, you can compare the effects of market volatilities on F45 Training 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 F45 Training with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and Fidelity Advisor.

Diversification Opportunities for F45 Training and Fidelity Advisor

-0.6

Correlation Coefficient

F45 Training  Fidelity Advisor

Excellent diversification

The 3 months correlation between F45 and Fidelity is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and Fidelity Advisor Sumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sumer and F45 Training 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 F45 Training Holdings 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 Sumer has no effect on the direction of F45 Training i.e., F45 Training and Fidelity Advisor go up and down completely randomly.

Pair Corralation between F45 Training and Fidelity Advisor

Given the investment horizon of 90 days F45 Training Holdings is expected to under-perform the Fidelity Advisor. In addition to that, F45 Training is 4.45 times more volatile than Fidelity Advisor Sumer. It trades about -0.24 of its total potential returns per unit of risk. Fidelity Advisor Sumer is currently generating about 0.06 per unit of volatility. If you would invest  2,495  in Fidelity Advisor Sumer on October 6, 2024 and sell it today you would earn a total of  980.00  from holding Fidelity Advisor Sumer or generate 39.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	23.37%
Values	Daily Returns

F45 Training Holdings  vs.  Fidelity Advisor Sumer

F45 Training Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days F45 Training Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, F45 Training is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Fidelity Advisor Sumer

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Sumer are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with F45 Training and Fidelity Advisor

The main advantage of trading using opposite F45 Training and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training 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 F45 Training Holdings and Fidelity Advisor Sumer 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.