Correlation Between Fidelity Canadian and PHN Canadian
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By analyzing existing cross correlation between Fidelity Canadian Growth and PHN Canadian Equity, you can compare the effects of market volatilities on Fidelity Canadian and PHN 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 Fidelity Canadian with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canadian and PHN Canadian.
Diversification Opportunities for Fidelity Canadian and PHN Canadian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and PHN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canadian Growth and PHN Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Canadian Equity 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 PHN Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Canadian Equity has no effect on the direction of Fidelity Canadian i.e., Fidelity Canadian and PHN Canadian go up and down completely randomly.
Pair Corralation between Fidelity Canadian and PHN Canadian
Assuming the 90 days trading horizon Fidelity Canadian Growth is expected to generate 1.32 times more return on investment than PHN Canadian. However, Fidelity Canadian is 1.32 times more volatile than PHN Canadian Equity. It trades about 0.37 of its potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.31 per unit of risk. If you would invest 12,293 in Fidelity Canadian Growth on August 30, 2024 and sell it today you would earn a total of 760.00 from holding Fidelity Canadian Growth or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Canadian Growth vs. PHN Canadian Equity
Performance |
| Timeline |
| Fidelity Canadian Growth |
| PHN Canadian Equity |
Fidelity Canadian and PHN Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canadian and PHN Canadian
The main advantage of trading using opposite Fidelity Canadian and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canadian position performs unexpectedly, PHN 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 PHN Canadian will offset losses from the drop in PHN Canadian's long position.| Fidelity Canadian vs. Blue Ribbon Income | Fidelity Canadian vs. MINT Income Fund | Fidelity Canadian vs. Energy Income | Fidelity Canadian vs. Canadian High Income |
| PHN Canadian vs. Mawer Canadien actions | PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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