Correlation Between Fidelity California and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Fidelity California 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 Fidelity California and Fidelity Advisor 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 Fidelity Advisor Dividend, you can compare the effects of market volatilities on Fidelity California 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 Fidelity California with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity California and Fidelity Advisor.
Diversification Opportunities for Fidelity California and Fidelity Advisor
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and Fidelity is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity California Municipal and Fidelity Advisor Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Dividend 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 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 Dividend has no effect on the direction of Fidelity California i.e., Fidelity California and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Fidelity California and Fidelity Advisor
Assuming the 90 days horizon Fidelity California is expected to generate 11.51 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Fidelity California Municipal is 4.21 times less risky than Fidelity Advisor. It trades about 0.01 of its potential returns per unit of risk. Fidelity Advisor Dividend is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,184 in Fidelity Advisor Dividend on May 2, 2025 and sell it today you would earn a total of 201.00 from holding Fidelity Advisor Dividend or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity California Municipal vs. Fidelity Advisor Dividend
Performance |
| Timeline |
| Fidelity California |
| Fidelity Advisor Dividend |
Fidelity California and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity California and Fidelity Advisor
The main advantage of trading using opposite Fidelity California and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity California 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.| Fidelity California vs. Sprott Gold Equity | Fidelity California vs. Gabelli Gold Fund | Fidelity California vs. Precious Metals And | Fidelity California vs. Europac Gold Fund |
| Fidelity Advisor vs. Jpmorgan Government Bond | Fidelity Advisor vs. Us Government Securities | Fidelity Advisor vs. Blackrock Government Bond | Fidelity Advisor vs. Us Government Securities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |