Correlation Between Fidelity Advisor and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Brandes Emerging 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 Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Technology and Brandes Emerging Markets, you can compare the effects of market volatilities on Fidelity Advisor and Brandes Emerging 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 Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Brandes Emerging.
Diversification Opportunities for Fidelity Advisor and Brandes Emerging
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Brandes is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Technology and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets 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 Technology are associated (or correlated) with Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Brandes Emerging go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Brandes Emerging
Assuming the 90 days horizon Fidelity Advisor Technology is expected to generate 1.43 times more return on investment than Brandes Emerging. However, Fidelity Advisor is 1.43 times more volatile than Brandes Emerging Markets. It trades about 0.19 of its potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.23 per unit of risk. If you would invest 13,518 in Fidelity Advisor Technology on June 5, 2025 and sell it today you would earn a total of 1,619 from holding Fidelity Advisor Technology or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Technology vs. Brandes Emerging Markets
Performance |
| Timeline |
| Fidelity Advisor Tec |
| Brandes Emerging Markets |
Fidelity Advisor and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Brandes Emerging
The main advantage of trading using opposite Fidelity Advisor and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Brandes Emerging 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Fidelity Advisor vs. Profunds Money | Fidelity Advisor vs. Putnam Money Market | Fidelity Advisor vs. Matson Money International | Fidelity Advisor vs. Franklin Government Money |
| Brandes Emerging vs. Baron Emerging Markets | Brandes Emerging vs. Brandes International Small | Brandes Emerging vs. Brandes International Equity | Brandes Emerging vs. Guggenheim Macro Opportunities |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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