Correlation Between Fidelity Advisor and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Mainstay Convertible 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 Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Energy and Mainstay Vertible Fund, you can compare the effects of market volatilities on Fidelity Advisor and Mainstay Convertible 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 Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Mainstay Convertible.
Diversification Opportunities for Fidelity Advisor and Mainstay Convertible
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Mainstay is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Energy are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Mainstay Convertible
Assuming the 90 days horizon Fidelity Advisor is expected to generate 1.49 times less return on investment than Mainstay Convertible. In addition to that, Fidelity Advisor is 2.54 times more volatile than Mainstay Vertible Fund. It trades about 0.06 of its total potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.24 per unit of volatility. If you would invest 1,877 in Mainstay Vertible Fund on June 11, 2025 and sell it today you would earn a total of 116.00 from holding Mainstay Vertible Fund or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Energy vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Fidelity Advisor Energy |
| Mainstay Convertible |
Fidelity Advisor and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Mainstay Convertible
The main advantage of trading using opposite Fidelity Advisor and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.The idea behind Fidelity Advisor Energy and Mainstay Vertible Fund 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.
| Mainstay Convertible vs. Mainstay Large Cap | Mainstay Convertible vs. Mainstay Large Cap | Mainstay Convertible vs. Mainstay Large Cap | Mainstay Convertible vs. Mainstay Winslow Large |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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