Correlation Between Fidelity Advisor and Frost Low

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Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Frost Low 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 Frost Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Freedom and Frost Low Duration, you can compare the effects of market volatilities on Fidelity Advisor and Frost Low 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 Frost Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Frost Low.

Diversification Opportunities for Fidelity Advisor and Frost Low

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Fidelity and Frost is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Freedom and Frost Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Low Duration 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 Freedom are associated (or correlated) with Frost Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Low Duration has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Frost Low go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Frost Low

Assuming the 90 days horizon Fidelity Advisor Freedom is expected to generate 1.31 times more return on investment than Frost Low. However, Fidelity Advisor is 1.31 times more volatile than Frost Low Duration. It trades about 0.19 of its potential returns per unit of risk. Frost Low Duration is currently generating about 0.12 per unit of risk. If you would invest  917.00  in Fidelity Advisor Freedom on May 5, 2025 and sell it today you would earn a total of  21.00  from holding Fidelity Advisor Freedom or generate 2.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Fidelity Advisor Freedom  vs.  Frost Low Duration

 Performance 
       Timeline  
Fidelity Advisor Freedom 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Freedom are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Frost Low Duration 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Frost Low Duration are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Frost Low is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Advisor and Frost Low Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Advisor and Frost Low

The main advantage of trading using opposite Fidelity Advisor and Frost Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Frost Low 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 Frost Low will offset losses from the drop in Frost Low's long position.
The idea behind Fidelity Advisor Freedom and Frost Low Duration 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.
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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