Correlation Between PHN Multi and Fidelity Canadian
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By analyzing existing cross correlation between PHN Multi Style All Cap and Fidelity Canadian Growth, you can compare the effects of market volatilities on PHN Multi 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 PHN Multi with a short position of Fidelity Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Fidelity Canadian.
Diversification Opportunities for PHN Multi and Fidelity Canadian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and Fidelity is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap 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 PHN Multi 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 PHN Multi Style All Cap 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 PHN Multi i.e., PHN Multi and Fidelity Canadian go up and down completely randomly.
Pair Corralation between PHN Multi and Fidelity Canadian
Assuming the 90 days trading horizon PHN Multi is expected to generate 1.31 times less return on investment than Fidelity Canadian. But when comparing it to its historical volatility, PHN Multi Style All Cap is 1.17 times less risky than Fidelity Canadian. It trades about 0.1 of its potential returns per unit of risk. Fidelity Canadian Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,991 in Fidelity Canadian Growth on August 29, 2024 and sell it today you would earn a total of 5,062 from holding Fidelity Canadian Growth or generate 63.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Fidelity Canadian Growth
Performance |
| Timeline |
| PHN Multi Style |
| Fidelity Canadian Growth |
PHN Multi and Fidelity Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Fidelity Canadian
The main advantage of trading using opposite PHN Multi and Fidelity Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi 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.| PHN Multi vs. Mawer Equity A | PHN Multi vs. BMO Aggregate Bond | PHN Multi vs. iShares Canadian HYBrid | PHN Multi vs. Brompton European Dividend |
| Fidelity Canadian vs. Blue Ribbon Income | Fidelity Canadian vs. MINT Income Fund | Fidelity Canadian vs. Energy Income | Fidelity Canadian vs. Canadian High Income |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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