Correlation Between Fidelity Sustainable and Strategic Advisers

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

By analyzing existing cross correlation between Fidelity Sustainable Target and Strategic Advisers Small Mid, you can compare the effects of market volatilities on Fidelity Sustainable and Strategic Advisers 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 Sustainable with a short position of Strategic Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sustainable and Strategic Advisers.

Diversification Opportunities for Fidelity Sustainable and Strategic Advisers

0.0

Correlation Coefficient

Fidelity Sustainable  Strategic Advisers

Pay attention - limited upside

The 3 months correlation between Fidelity and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sustainable Target and Strategic Advisers Small Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Advisers and Fidelity Sustainable 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 Sustainable Target are associated (or correlated) with Strategic Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Advisers has no effect on the direction of Fidelity Sustainable i.e., Fidelity Sustainable and Strategic Advisers go up and down completely randomly.

Pair Corralation between Fidelity Sustainable and Strategic Advisers

If you would invest  1,812  in Strategic Advisers Small Mid on February 3, 2025 and sell it today you would lose (4.00) from holding Strategic Advisers Small Mid or give up 0.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Fidelity Sustainable Target  vs.  Strategic Advisers Small Mid

Fidelity Sustainable

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Sustainable Target has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Sustainable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Strategic Advisers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Strategic Advisers Small Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Strategic Advisers 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 Sustainable and Strategic Advisers

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

The idea behind Fidelity Sustainable Target and Strategic Advisers Small Mid 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.