Correlation Between Fidelity Advisor and Shelton Emerging

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

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

Diversification Opportunities for Fidelity Advisor and Shelton Emerging

0.67

Correlation Coefficient

Fidelity Advisor  Shelton Emerging

Poor diversification

The 3 months correlation between Fidelity and Shelton is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Emerging and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton 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 Emerging are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Shelton Emerging go up and down completely randomly.

Pair Corralation between Fidelity Advisor and Shelton Emerging

Assuming the 90 days horizon Fidelity Advisor Emerging is expected to generate 0.93 times more return on investment than Shelton Emerging. However, Fidelity Advisor Emerging is 1.08 times less risky than Shelton Emerging. It trades about 0.23 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest  3,295  in Fidelity Advisor Emerging on May 6, 2025 and sell it today you would earn a total of  357.00  from holding Fidelity Advisor Emerging or generate 10.83% return on investment over 90 days.

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

Fidelity Advisor Emerging  vs.  Shelton Emerging Markets

Fidelity Advisor Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Emerging are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Shelton Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shelton Emerging Markets are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Shelton Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Fidelity Advisor and Shelton Emerging

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

The idea behind Fidelity Advisor Emerging and Shelton 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.