Correlation Between Fidelity Advisor and Catalystwarrington

Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Catalystwarrington 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 Catalystwarrington 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 Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Fidelity Advisor and Catalystwarrington 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 Catalystwarrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Catalystwarrington.

Diversification Opportunities for Fidelity Advisor and Catalystwarrington

-0.75

Correlation Coefficient

Fidelity Advisor  Catalystwarrington

Pay attention - limited upside

The 3 months correlation between Fidelity and Catalystwarrington is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystwarrington 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 Catalystwarrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystwarrington has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Catalystwarrington go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Catalystwarrington

Assuming the 90 days horizon Fidelity Advisor Energy is expected to generate 17.44 times more return on investment than Catalystwarrington. However, Fidelity Advisor is 17.44 times more volatile than Catalystwarrington Strategic Program. It trades about 0.17 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.07 per unit of risk. If you would invest  4,304  in Fidelity Advisor Energy on May 5, 2025 and sell it today you would earn a total of  580.00  from holding Fidelity Advisor Energy or generate 13.48% return on investment over 90 days.

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

Fidelity Advisor Energy  vs.  Catalystwarrington Strategic P

Fidelity Advisor Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Energy are ranked lower than 13 (%) 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.

Catalystwarrington

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catalystwarrington Strategic Program has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Catalystwarrington 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 Catalystwarrington

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

The idea behind Fidelity Advisor Energy and Catalystwarrington Strategic Program 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.