Correlation Between Fidelity Money and Advantage Portfolio
Can any of the company-specific risk be diversified away by investing in both Fidelity Money and Advantage Portfolio 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 Money and Advantage Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Money Market and Advantage Portfolio Class, you can compare the effects of market volatilities on Fidelity Money and Advantage Portfolio 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 Money with a short position of Advantage Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Money and Advantage Portfolio.
Diversification Opportunities for Fidelity Money and Advantage Portfolio
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Advantage is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Money Market and Advantage Portfolio Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Portfolio Class and Fidelity Money 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 Money Market are associated (or correlated) with Advantage Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Portfolio Class has no effect on the direction of Fidelity Money i.e., Fidelity Money and Advantage Portfolio go up and down completely randomly.
Pair Corralation between Fidelity Money and Advantage Portfolio
Assuming the 90 days horizon Fidelity Money is expected to generate 25.28 times less return on investment than Advantage Portfolio. But when comparing it to its historical volatility, Fidelity Money Market is 19.68 times less risky than Advantage Portfolio. It trades about 0.13 of its potential returns per unit of risk. Advantage Portfolio Class is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,928 in Advantage Portfolio Class on March 28, 2025 and sell it today you would earn a total of 504.00 from holding Advantage Portfolio Class or generate 26.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Fidelity Money Market vs. Advantage Portfolio Class
Performance |
| Timeline |
| Fidelity Money Market |
| Advantage Portfolio Class |
Fidelity Money and Advantage Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Money and Advantage Portfolio
The main advantage of trading using opposite Fidelity Money and Advantage Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Money position performs unexpectedly, Advantage Portfolio 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 Advantage Portfolio will offset losses from the drop in Advantage Portfolio's long position.| Fidelity Money vs. Champlain Mid Cap | Fidelity Money vs. Shelton Funds | Fidelity Money vs. Growth Fund Of | Fidelity Money vs. Issachar Fund Class |
| Advantage Portfolio vs. Mid Cap Growth | Advantage Portfolio vs. Morgan Stanley Multi | Advantage Portfolio vs. Small Pany Growth | Advantage Portfolio vs. Blackrock Science Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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