Correlation Between Cornerstone Moderately and Fidelity Advisor

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

By analyzing existing cross correlation between Cornerstone Moderately Aggressive and Fidelity Advisor 529, you can compare the effects of market volatilities on Cornerstone Moderately 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 Cornerstone Moderately with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Moderately and Fidelity Advisor.

Diversification Opportunities for Cornerstone Moderately and Fidelity Advisor

0.51

Correlation Coefficient

Cornerstone Moderately  Fidelity Advisor

Very weak diversification

The 3 months correlation between Cornerstone and Fidelity is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Moderately Aggress and Fidelity Advisor 529 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor 529 and Cornerstone Moderately 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 Cornerstone Moderately Aggressive 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 529 has no effect on the direction of Cornerstone Moderately i.e., Cornerstone Moderately and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Cornerstone Moderately and Fidelity Advisor

Assuming the 90 days horizon Cornerstone Moderately Aggressive is expected to under-perform the Fidelity Advisor. In addition to that, Cornerstone Moderately is 1.78 times more volatile than Fidelity Advisor 529. It trades about -0.14 of its total potential returns per unit of risk. Fidelity Advisor 529 is currently generating about 0.34 per unit of volatility. If you would invest  7,278  in Fidelity Advisor 529 on September 16, 2025 and sell it today you would earn a total of  553.00  from holding Fidelity Advisor 529 or generate 7.6% return on investment over 90 days.

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

Cornerstone Moderately Aggress  vs.  Fidelity Advisor 529

Cornerstone Moderately

Risk-Adjusted Performance

Weakest

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

Fidelity Advisor 529

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor 529 are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fidelity Advisor may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Cornerstone Moderately and Fidelity Advisor

The main advantage of trading using opposite Cornerstone Moderately and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Moderately 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 Cornerstone Moderately Aggressive and Fidelity Advisor 529 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.