Correlation Between RBC Select and Fidelity Canadian
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By analyzing existing cross correlation between RBC Select Balanced and Fidelity Canadian Growth, you can compare the effects of market volatilities on RBC Select and Fidelity Canadian 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 RBC Select with a short position of Fidelity Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Select and Fidelity Canadian.
Diversification Opportunities for RBC Select and Fidelity Canadian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RBC and Fidelity is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding RBC Select Balanced and Fidelity Canadian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canadian Growth and RBC Select 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 RBC Select Balanced are associated (or correlated) with Fidelity Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canadian Growth has no effect on the direction of RBC Select i.e., RBC Select and Fidelity Canadian go up and down completely randomly.
Pair Corralation between RBC Select and Fidelity Canadian
Assuming the 90 days trading horizon RBC Select is expected to generate 2.52 times less return on investment than Fidelity Canadian. But when comparing it to its historical volatility, RBC Select Balanced is 2.05 times less risky than Fidelity Canadian. It trades about 0.16 of its potential returns per unit of risk. Fidelity Canadian Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 8,332 in Fidelity Canadian Growth on August 26, 2024 and sell it today you would earn a total of 4,692 from holding Fidelity Canadian Growth or generate 56.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Select Balanced vs. Fidelity Canadian Growth
Performance |
| Timeline |
| RBC Select Balanced |
| Fidelity Canadian Growth |
RBC Select and Fidelity Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Select and Fidelity Canadian
The main advantage of trading using opposite RBC Select and Fidelity Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Select position performs unexpectedly, Fidelity Canadian 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 Canadian will offset losses from the drop in Fidelity Canadian's long position.| RBC Select vs. TD Comfort Balanced | RBC Select vs. Mawer Balanced | RBC Select vs. BMO Aggregate Bond | RBC Select vs. iShares Canadian HYBrid |
| Fidelity Canadian vs. Tech Leaders Income | Fidelity Canadian vs. BetaPro SPTSX 60 | Fidelity Canadian vs. Brompton Global Dividend | Fidelity Canadian vs. Global X Active |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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