Correlation Between Invesco Oppenheimer and Fidelity Advisor

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Can any of the company-specific risk be diversified away by investing in both Invesco Oppenheimer 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 Invesco Oppenheimer and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Oppenheimer Portfolio and Fidelity Advisor Asset, you can compare the effects of market volatilities on Invesco Oppenheimer 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 Invesco Oppenheimer with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Oppenheimer and Fidelity Advisor.

Diversification Opportunities for Invesco Oppenheimer and Fidelity Advisor

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Invesco and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Oppenheimer Portfolio and Fidelity Advisor Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Asset and Invesco Oppenheimer 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 Invesco Oppenheimer Portfolio 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 Asset has no effect on the direction of Invesco Oppenheimer i.e., Invesco Oppenheimer and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Invesco Oppenheimer and Fidelity Advisor

Assuming the 90 days horizon Invesco Oppenheimer Portfolio is expected to under-perform the Fidelity Advisor. In addition to that, Invesco Oppenheimer is 1.17 times more volatile than Fidelity Advisor Asset. It trades about -0.14 of its total potential returns per unit of risk. Fidelity Advisor Asset is currently generating about -0.13 per unit of volatility. If you would invest  1,367  in Fidelity Advisor Asset on April 2, 2022 and sell it today you would lose (36.00)  from holding Fidelity Advisor Asset or give up 2.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Invesco Oppenheimer Portfolio  vs.  Fidelity Advisor Asset

 Performance (%) 
      Timeline 
Invesco Oppenheimer 
Invesco Performance
0 of 100
Over the last 90 days Invesco Oppenheimer Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Invesco Price Channel

Fidelity Advisor Asset 
Fidelity Performance
0 of 100
Over the last 90 days Fidelity Advisor Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Fidelity Price Channel

Invesco Oppenheimer and Fidelity Advisor Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Invesco Oppenheimer and Fidelity Advisor

The main advantage of trading using opposite Invesco Oppenheimer and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Oppenheimer 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.

Invesco Oppenheimer Portfolio

Pair trading matchups for Invesco Oppenheimer

The idea behind Invesco Oppenheimer Portfolio and Fidelity Advisor Asset 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.

Fidelity Advisor Asset

Pair trading matchups for Fidelity Advisor

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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