Correlation Between Fidelity Advisor and Dreyfus Necticut

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

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

Diversification Opportunities for Fidelity Advisor and Dreyfus Necticut

0.0

Correlation Coefficient

Fidelity Advisor  Dreyfus Necticut

Pay attention - limited upside

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

Pair Corralation between Fidelity Advisor and Dreyfus Necticut

If you would invest  0.00  in Dreyfus Necticut Fund on February 6, 2024 and sell it today you would earn a total of  0.00  from holding Dreyfus Necticut Fund or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Fidelity Advisor Gold  vs.  Dreyfus Necticut Fund

Fidelity Advisor Gold

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Gold are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fidelity Advisor showed solid returns over the last few months and may actually be approaching a breakup point.

Dreyfus Necticut

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind Fidelity Advisor Gold and Dreyfus Necticut Fund 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.