Correlation Between Fidelity Advisor and Chartwell Small

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

By analyzing existing cross correlation between Fidelity Advisor Gold and Chartwell Small Cap, you can compare the effects of market volatilities on Fidelity Advisor and Chartwell Small 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 Chartwell Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Chartwell Small.

Diversification Opportunities for Fidelity Advisor and Chartwell Small

0.27

Correlation Coefficient

Fidelity Advisor  Chartwell Small

Modest diversification

The 3 months correlation between Fidelity and Chartwell is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Chartwell Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chartwell Small Cap 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 Gold are associated (or correlated) with Chartwell Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chartwell Small Cap has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Chartwell Small go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Chartwell Small

Assuming the 90 days horizon Fidelity Advisor Gold is expected to generate 1.7 times more return on investment than Chartwell Small. However, Fidelity Advisor is 1.7 times more volatile than Chartwell Small Cap. It trades about 0.16 of its potential returns per unit of risk. Chartwell Small Cap is currently generating about 0.16 per unit of risk. If you would invest  3,650  in Fidelity Advisor Gold on May 27, 2025 and sell it today you would earn a total of  658.00  from holding Fidelity Advisor Gold or generate 18.03% return on investment over 90 days.

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

Fidelity Advisor Gold  vs.  Chartwell Small Cap

Fidelity Advisor Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Gold are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fidelity Advisor showed solid returns over the last few months and may actually be approaching a breakup point.

Chartwell Small Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chartwell Small Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Chartwell Small may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Fidelity Advisor and Chartwell Small

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

The idea behind Fidelity Advisor Gold and Chartwell Small Cap 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.