Correlation Between Pace International and Fidelity Advisor

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

By analyzing existing cross correlation between Pace International Emerging and Fidelity Advisor Large, you can compare the effects of market volatilities on Pace International and Fidelity Advisor 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 Pace International with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Fidelity Advisor.

Diversification Opportunities for Pace International and Fidelity Advisor

0.84

Correlation Coefficient

Pace International  Fidelity Advisor

Very poor diversification

The 3 months correlation between Pace and Fidelity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Fidelity Advisor Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Large and Pace International 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 Pace International Emerging are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Large has no effect on the direction of Pace International i.e., Pace International and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Pace International and Fidelity Advisor

Assuming the 90 days horizon Pace International Emerging is expected to generate 1.18 times more return on investment than Fidelity Advisor. However, Pace International is 1.18 times more volatile than Fidelity Advisor Large. It trades about 0.33 of its potential returns per unit of risk. Fidelity Advisor Large is currently generating about 0.2 per unit of risk. If you would invest  1,509  in Pace International Emerging on July 6, 2025 and sell it today you would earn a total of  215.00  from holding Pace International Emerging or generate 14.25% return on investment over 90 days.

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

Pace International Emerging  vs.  Fidelity Advisor Large

Pace International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pace International Emerging are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Pace International showed solid returns over the last few months and may actually be approaching a breakup point.

Fidelity Advisor Large

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Large are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Pace International and Fidelity Advisor

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

The idea behind Pace International Emerging and Fidelity Advisor Large 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.