Correlation Between Edgepoint Global and Fidelity Advanced

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

By analyzing existing cross correlation between Edgepoint Global Portfolio and Fidelity Advanced Equity, you can compare the effects of market volatilities on Edgepoint Global and Fidelity Advanced 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 Edgepoint Global with a short position of Fidelity Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgepoint Global and Fidelity Advanced.

Diversification Opportunities for Edgepoint Global and Fidelity Advanced

0.97

Correlation Coefficient

Edgepoint Global  Fidelity Advanced

Almost no diversification

The 3 months correlation between Edgepoint and Fidelity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Edgepoint Global Portfolio and Fidelity Advanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advanced Equity and Edgepoint Global 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 Edgepoint Global Portfolio are associated (or correlated) with Fidelity Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advanced Equity has no effect on the direction of Edgepoint Global i.e., Edgepoint Global and Fidelity Advanced go up and down completely randomly.

Pair Corralation between Edgepoint Global and Fidelity Advanced

Assuming the 90 days trading horizon Edgepoint Global is expected to generate 1.82 times less return on investment than Fidelity Advanced. In addition to that, Edgepoint Global is 1.03 times more volatile than Fidelity Advanced Equity. It trades about 0.31 of its total potential returns per unit of risk. Fidelity Advanced Equity is currently generating about 0.58 per unit of volatility. If you would invest  2,280  in Fidelity Advanced Equity on April 17, 2025 and sell it today you would earn a total of  145.00  from holding Fidelity Advanced Equity or generate 6.36% return on investment over 90 days.

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

Edgepoint Global Portfolio  vs.  Fidelity Advanced Equity

Edgepoint Global Por

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Edgepoint Global Portfolio are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly weak forward indicators, Edgepoint Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Fidelity Advanced Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advanced Equity are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of very abnormal basic indicators, Fidelity Advanced displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Edgepoint Global and Fidelity Advanced

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

The idea behind Edgepoint Global Portfolio and Fidelity Advanced Equity 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.