Correlation Between Fidelity Advisor and Siit Limited

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

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

Diversification Opportunities for Fidelity Advisor and Siit Limited

0.04

Correlation Coefficient

Fidelity Advisor  Siit Limited

Significant diversification

The 3 months correlation between Fidelity and Siit is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Siit Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Limited Duration and Fidelity Advisor 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 Advisor Gold are associated (or correlated) with Siit Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Limited Duration has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Siit Limited go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Siit Limited

Assuming the 90 days horizon Fidelity Advisor Gold is expected to under-perform the Siit Limited. In addition to that, Fidelity Advisor is 14.14 times more volatile than Siit Limited Duration. It trades about -0.02 of its total potential returns per unit of risk. Siit Limited Duration is currently generating about -0.04 per unit of volatility. If you would invest  963.00  in Siit Limited Duration on September 14, 2024 and sell it today you would lose (3.00) from holding Siit Limited Duration or give up 0.31% of portfolio value over 90 days.

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

Fidelity Advisor Gold  vs.  Siit Limited Duration

Fidelity Advisor Gold

Risk-Adjusted Performance

0 of 100

Very Weak

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

Siit Limited Duration

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Fidelity Advisor and Siit Limited

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

The idea behind Fidelity Advisor Gold and Siit Limited Duration 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.