Correlation Between Fidelity California and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Fidelity California and Astor Long/short 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 California and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity California Municipal and Astor Longshort Fund, you can compare the effects of market volatilities on Fidelity California and Astor Long/short 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 California with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity California and Astor Long/short.
Diversification Opportunities for Fidelity California and Astor Long/short
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Astor is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity California Municipal and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Fidelity California 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 California Municipal are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Fidelity California i.e., Fidelity California and Astor Long/short go up and down completely randomly.
Pair Corralation between Fidelity California and Astor Long/short
Assuming the 90 days horizon Fidelity California Municipal is expected to generate 0.41 times more return on investment than Astor Long/short. However, Fidelity California Municipal is 2.45 times less risky than Astor Long/short. It trades about 0.36 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.12 per unit of risk. If you would invest 1,193 in Fidelity California Municipal on August 29, 2025 and sell it today you would earn a total of 46.00 from holding Fidelity California Municipal or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity California Municipal vs. Astor Longshort Fund
Performance |
| Timeline |
| Fidelity California |
| Astor Long/short |
Fidelity California and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity California and Astor Long/short
The main advantage of trading using opposite Fidelity California and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity California position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Fidelity California vs. Fidelity Freedom 2015 | Fidelity California vs. Fidelity Puritan Fund | Fidelity California vs. Fidelity Puritan Fund | Fidelity California vs. Fidelity Pennsylvania Municipal |
| Astor Long/short vs. Delaware Investments Ultrashort | Astor Long/short vs. Calvert Short Duration | Astor Long/short vs. Diamond Hill Long Short | Astor Long/short vs. Angel Oak Ultrashort |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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