Correlation Between Fidelity ClearPath and CDSPI Petite
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By analyzing existing cross correlation between Fidelity ClearPath 2045 and CDSPI petite cap, you can compare the effects of market volatilities on Fidelity ClearPath 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 ClearPath with a short position of CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity ClearPath and CDSPI Petite.
Diversification Opportunities for Fidelity ClearPath and CDSPI Petite
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and CDSPI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity ClearPath 2045 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 ClearPath 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 ClearPath 2045 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 ClearPath i.e., Fidelity ClearPath and CDSPI Petite go up and down completely randomly.
Pair Corralation between Fidelity ClearPath and CDSPI Petite
Assuming the 90 days trading horizon Fidelity ClearPath is expected to generate 1.09 times less return on investment than CDSPI Petite. But when comparing it to its historical volatility, Fidelity ClearPath 2045 is 1.05 times less risky than CDSPI Petite. It trades about 0.28 of its potential returns per unit of risk. CDSPI petite cap is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 7,171 in CDSPI petite cap on November 4, 2024 and sell it today you would earn a total of 313.00 from holding CDSPI petite cap or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity ClearPath 2045 vs. CDSPI petite cap
Performance |
| Timeline |
| Fidelity ClearPath 2045 |
| CDSPI petite cap |
Fidelity ClearPath and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity ClearPath and CDSPI Petite
The main advantage of trading using opposite Fidelity ClearPath and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity ClearPath 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 ClearPath vs. Fidelity AsiaStar Series | Fidelity ClearPath vs. Fidelity Global Innovators | Fidelity ClearPath vs. Fidelity Canadian Growth | Fidelity ClearPath vs. Fidelity Tactical High |
| CDSPI Petite vs. CDSPI Common Stock | CDSPI Petite vs. CDSPI Dividend | CDSPI Petite vs. CDSPI Balanced Value | CDSPI Petite vs. CDSPI SP 500 |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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