Correlation Between Ab Global and Fidelity Advisor

Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ab Global Bond and Fidelity Advisor Gold, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Fidelity Advisor.

Diversification Opportunities for Ab Global and Fidelity Advisor

0.72

Correlation Coefficient

Ab Global  Fidelity Advisor

Poor diversification

The 3 months correlation between ANAGX and Fidelity is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Fidelity Advisor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Gold and Ab Global 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 Ab Global Bond 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 Gold has no effect on the direction of Ab Global i.e., Ab Global and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Ab Global and Fidelity Advisor

Assuming the 90 days horizon Ab Global is expected to generate 11.43 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Ab Global Bond is 11.43 times less risky than Fidelity Advisor. It trades about 0.08 of its potential returns per unit of risk. Fidelity Advisor Gold is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,660  in Fidelity Advisor Gold on May 7, 2025 and sell it today you would earn a total of  328.00  from holding Fidelity Advisor Gold or generate 8.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ab Global Bond  vs.  Fidelity Advisor Gold

Ab Global Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Global Bond are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Ab Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Advisor Gold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Gold are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ab Global and Fidelity Advisor

The main advantage of trading using opposite Ab Global and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.

The idea behind Ab Global Bond and Fidelity Advisor Gold 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.