Correlation Between Fidelity Advisor and George Putnam
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and George Putnam 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 George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Diversified and George Putnam Balanced, you can compare the effects of market volatilities on Fidelity Advisor and George Putnam 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 George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and George Putnam.
Diversification Opportunities for Fidelity Advisor and George Putnam
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and George is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Diversified and George Putnam Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam Balanced 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 Diversified are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam Balanced has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and George Putnam go up and down completely randomly.
Pair Corralation between Fidelity Advisor and George Putnam
Assuming the 90 days horizon Fidelity Advisor Diversified is expected to under-perform the George Putnam. In addition to that, Fidelity Advisor is 2.15 times more volatile than George Putnam Balanced. It trades about -0.19 of its total potential returns per unit of risk. George Putnam Balanced is currently generating about 0.04 per unit of volatility. If you would invest 2,560 in George Putnam Balanced on September 24, 2024 and sell it today you would earn a total of 34.00 from holding George Putnam Balanced or generate 1.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Advisor Diversified vs. George Putnam Balanced
Performance |
Timeline |
Fidelity Advisor Div |
George Putnam Balanced |
Fidelity Advisor and George Putnam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advisor and George Putnam
The main advantage of trading using opposite Fidelity Advisor and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.Fidelity Advisor vs. Fidelity Freedom 2015 | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Pennsylvania Municipal |
George Putnam vs. Fidelity Advisor Diversified | George Putnam vs. Aqr Diversified Arbitrage | George Putnam vs. Stone Ridge Diversified | George Putnam vs. Jpmorgan Diversified Fund |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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