Correlation Between Allianzgi Focused and Fidelity Advisor

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

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

Diversification Opportunities for Allianzgi Focused and Fidelity Advisor

0.4

Correlation Coefficient

Allianzgi Focused  Fidelity Advisor

Very weak diversification

The 3 months correlation between Allianzgi and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Focused Growth and Fidelity Advisor Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sem and Allianzgi Focused 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 Allianzgi Focused Growth 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 Sem has no effect on the direction of Allianzgi Focused i.e., Allianzgi Focused and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Allianzgi Focused and Fidelity Advisor

Assuming the 90 days horizon Allianzgi Focused Growth is expected to under-perform the Fidelity Advisor. In addition to that, Allianzgi Focused is 1.14 times more volatile than Fidelity Advisor Semiconductors. It trades about -0.2 of its total potential returns per unit of risk. Fidelity Advisor Semiconductors is currently generating about -0.07 per unit of volatility. If you would invest  7,017  in Fidelity Advisor Semiconductors on October 6, 2024 and sell it today you would lose (312.00) from holding Fidelity Advisor Semiconductors or give up 4.45% of portfolio value over 90 days.

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

Allianzgi Focused Growth  vs.  Fidelity Advisor Semiconductor

Allianzgi Focused Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Fidelity Advisor Sem

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Advisor Semiconductors has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong 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 Allianzgi Focused and Fidelity Advisor

The main advantage of trading using opposite Allianzgi Focused and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Focused 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 Allianzgi Focused Growth and Fidelity Advisor Semiconductors 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.