Correlation Between Fidelity Advisor and Touchstone Focused
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Touchstone Focused 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 Touchstone Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Diversified and Touchstone Focused Fund, you can compare the effects of market volatilities on Fidelity Advisor and Touchstone Focused 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 Touchstone Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Touchstone Focused.
Diversification Opportunities for Fidelity Advisor and Touchstone Focused
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Touchstone is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Diversified and Touchstone Focused Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Focused 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 Diversified are associated (or correlated) with Touchstone Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Focused has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Touchstone Focused go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Touchstone Focused
Assuming the 90 days horizon Fidelity Advisor is expected to generate 1.62 times less return on investment than Touchstone Focused. But when comparing it to its historical volatility, Fidelity Advisor Diversified is 1.06 times less risky than Touchstone Focused. It trades about 0.21 of its potential returns per unit of risk. Touchstone Focused Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 7,055 in Touchstone Focused Fund on April 29, 2025 and sell it today you would earn a total of 1,097 from holding Touchstone Focused Fund or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Diversified vs. Touchstone Focused Fund
Performance |
| Timeline |
| Fidelity Advisor Div |
| Touchstone Focused |
Fidelity Advisor and Touchstone Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Touchstone Focused
The main advantage of trading using opposite Fidelity Advisor and Touchstone Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Touchstone Focused 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 Touchstone Focused will offset losses from the drop in Touchstone Focused's long position.| Fidelity Advisor vs. Fidelity Small Cap | Fidelity Advisor vs. Fidelity International Growth | Fidelity Advisor vs. Fidelity Advisor Mid | Fidelity Advisor vs. Foreign Smaller Panies |
| Touchstone Focused vs. Ab Global Risk | Touchstone Focused vs. Jhancock Global Equity | Touchstone Focused vs. Calamos Global Growth | Touchstone Focused vs. Mirova Global Sustainable |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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