Correlation Between Fidelity Canadian and CDSPI Petite
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By analyzing existing cross correlation between Fidelity Canadian Growth and CDSPI petite cap, you can compare the effects of market volatilities on Fidelity Canadian and CDSPI Petite 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 Canadian with a short position of CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canadian and CDSPI Petite.
Diversification Opportunities for Fidelity Canadian and CDSPI Petite
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and CDSPI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canadian Growth and CDSPI petite cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI petite cap and Fidelity Canadian 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 Canadian Growth are associated (or correlated) with CDSPI Petite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI petite cap has no effect on the direction of Fidelity Canadian i.e., Fidelity Canadian and CDSPI Petite go up and down completely randomly.
Pair Corralation between Fidelity Canadian and CDSPI Petite
Assuming the 90 days trading horizon Fidelity Canadian is expected to generate 1.15 times less return on investment than CDSPI Petite. In addition to that, Fidelity Canadian is 1.61 times more volatile than CDSPI petite cap. It trades about 0.16 of its total potential returns per unit of risk. CDSPI petite cap is currently generating about 0.3 per unit of volatility. If you would invest 7,152 in CDSPI petite cap on November 7, 2024 and sell it today you would earn a total of 332.00 from holding CDSPI petite cap or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Canadian Growth vs. CDSPI petite cap
Performance |
| Timeline |
| Fidelity Canadian Growth |
| CDSPI petite cap |
Fidelity Canadian and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canadian and CDSPI Petite
The main advantage of trading using opposite Fidelity Canadian and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canadian position performs unexpectedly, CDSPI Petite 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 CDSPI Petite will offset losses from the drop in CDSPI Petite's long position.| Fidelity Canadian vs. RBC Select Balanced | Fidelity Canadian vs. PIMCO Monthly Income | Fidelity Canadian vs. RBC Portefeuille de | Fidelity Canadian vs. Edgepoint Global Portfolio |
| CDSPI Petite vs. BMO Aggregate Bond | CDSPI Petite vs. iShares Canadian HYBrid | CDSPI Petite vs. Brompton European Dividend | CDSPI Petite vs. Solar Alliance Energy |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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