Correlation Between The Gabelli and Fidelity Advisor

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

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

Diversification Opportunities for The Gabelli and Fidelity Advisor

0.0

Correlation Coefficient

The Gabelli  Fidelity Advisor

Pay attention - limited upside

The 3 months correlation between The and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and Fidelity Advisor Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Uti and The Gabelli 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 The Gabelli Utilities 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 Uti has no effect on the direction of The Gabelli i.e., The Gabelli and Fidelity Advisor go up and down completely randomly.

Pair Corralation between The Gabelli and Fidelity Advisor

If you would invest  192.00  in The Gabelli Utilities on October 7, 2024 and sell it today you would earn a total of  0.00  from holding The Gabelli Utilities or generate 0.0% return on investment over 90 days.

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

The Gabelli Utilities  vs.  Fidelity Advisor Utilities

Gabelli Utilities

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Gabelli Utilities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, The Gabelli is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Advisor Uti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Advisor Utilities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with The Gabelli and Fidelity Advisor

The main advantage of trading using opposite The Gabelli and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli 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 The Gabelli Utilities and Fidelity Advisor Utilities 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.