Correlation Between Fidelity Technology and CI Signature
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By analyzing existing cross correlation between Fidelity Technology Innovators and CI Signature Cat, you can compare the effects of market volatilities on Fidelity Technology and CI Signature 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 Technology with a short position of CI Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Technology and CI Signature.
Diversification Opportunities for Fidelity Technology and CI Signature
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and 0P0001AAKP is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Technology Innovators and CI Signature Cat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Signature Cat and Fidelity Technology 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 Technology Innovators are associated (or correlated) with CI Signature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Signature Cat has no effect on the direction of Fidelity Technology i.e., Fidelity Technology and CI Signature go up and down completely randomly.
Pair Corralation between Fidelity Technology and CI Signature
Assuming the 90 days trading horizon Fidelity Technology is expected to generate 9.88 times less return on investment than CI Signature. But when comparing it to its historical volatility, Fidelity Technology Innovators is 1.81 times less risky than CI Signature. It trades about 0.05 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,362 in CI Signature Cat on August 29, 2024 and sell it today you would earn a total of 325.00 from holding CI Signature Cat or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity Technology Innovators vs. CI Signature Cat
Performance |
| Timeline |
| Fidelity Technology |
| CI Signature Cat |
Fidelity Technology and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Technology and CI Signature
The main advantage of trading using opposite Fidelity Technology and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Technology position performs unexpectedly, CI Signature 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 CI Signature will offset losses from the drop in CI Signature's long position.| Fidelity Technology vs. Fidelity Tactical High | Fidelity Technology vs. Fidelity ClearPath 2045 | Fidelity Technology vs. Fidelity Small Cap | Fidelity Technology vs. Fidelity Canadian Growth |
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.
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