Correlation Between Goldman Sachs and Fidelity Advisor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Centrated and Fidelity Advisor New, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Fidelity Advisor.

Diversification Opportunities for Goldman Sachs and Fidelity Advisor

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Goldman and Fidelity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CENTRATED and FIDELITY ADVISOR NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor New and Goldman Sachs 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 Goldman Sachs Centrated 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 New has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Goldman Sachs and Fidelity Advisor

Assuming the 90 days horizon Goldman Sachs is expected to generate 2.78 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Goldman Sachs Centrated is 1.01 times less risky than Fidelity Advisor. It trades about 0.07 of its potential returns per unit of risk. Fidelity Advisor New is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,691  in Fidelity Advisor New on December 29, 2023 and sell it today you would earn a total of  87.00  from holding Fidelity Advisor New or generate 3.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.65%
ValuesDaily Returns

GOLDMAN SACHS CENTRATED  vs.  FIDELITY ADVISOR NEW

 Performance 
       Timeline  
Goldman Sachs Centrated 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Centrated are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Fidelity Advisor New 

Risk-Adjusted Performance

20 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor New are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fidelity Advisor showed solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs and Fidelity Advisor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Goldman Sachs and Fidelity Advisor

The main advantage of trading using opposite Goldman Sachs and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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 Goldman Sachs Centrated and Fidelity Advisor New 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets