Correlation Between Fidelity Emerging and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging 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 Emerging 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 Emerging Asia and Fidelity Advisor Emerging, you can compare the effects of market volatilities on Fidelity Emerging 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 Emerging with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Fidelity Advisor.
Diversification Opportunities for Fidelity Emerging and Fidelity Advisor
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Asia and Fidelity Advisor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Emerging and Fidelity Emerging 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 Emerging Asia 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 Emerging has no effect on the direction of Fidelity Emerging i.e., Fidelity Emerging and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Fidelity Advisor
Assuming the 90 days horizon Fidelity Emerging Asia is expected to generate 1.0 times more return on investment than Fidelity Advisor. However, Fidelity Emerging Asia is 1.0 times less risky than Fidelity Advisor. It trades about 0.17 of its potential returns per unit of risk. Fidelity Advisor Emerging is currently generating about 0.17 per unit of risk. If you would invest 5,837 in Fidelity Emerging Asia on July 20, 2025 and sell it today you would earn a total of 702.00 from holding Fidelity Emerging Asia or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Emerging Asia vs. Fidelity Advisor Emerging
Performance |
| Timeline |
| Fidelity Emerging Asia |
| Fidelity Advisor Emerging |
Fidelity Emerging and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Fidelity Advisor
The main advantage of trading using opposite Fidelity Emerging and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging 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 Emerging vs. Fidelity Advisor Diversified | Fidelity Emerging vs. Goldman Sachs Smallmid | Fidelity Emerging vs. Fidelity International Small | Fidelity Emerging vs. Harbor Large Cap |
| Fidelity Advisor vs. Longview Advantage ETF | Fidelity Advisor vs. Vanguard Value Factor | Fidelity Advisor vs. First Trust Exchange Traded | Fidelity Advisor vs. Cambria Emerging Shareholder |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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