Correlation Between Fidelity Advisor and Calvert Emerging

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

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

Diversification Opportunities for Fidelity Advisor and Calvert Emerging

0.59

Correlation Coefficient

Fidelity Advisor  Calvert Emerging

Very weak diversification

The 3 months correlation between Fidelity and Calvert is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Energy are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Calvert Emerging go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Calvert Emerging

Assuming the 90 days horizon Fidelity Advisor Energy is expected to generate 1.6 times more return on investment than Calvert Emerging. However, Fidelity Advisor is 1.6 times more volatile than Calvert Emerging Markets. It trades about 0.2 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest  4,304  in Fidelity Advisor Energy on May 3, 2025 and sell it today you would earn a total of  655.00  from holding Fidelity Advisor Energy or generate 15.22% return on investment over 90 days.

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

Fidelity Advisor Energy  vs.  Calvert Emerging Markets

Fidelity Advisor Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Energy are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Advisor showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Emerging Markets

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Emerging Markets are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidelity Advisor and Calvert Emerging

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

The idea behind Fidelity Advisor Energy and Calvert Emerging Markets 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.