Correlation Between Bts Tactical and Fidelity China
Can any of the company-specific risk be diversified away by investing in both Bts Tactical and Fidelity China at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bts Tactical and Fidelity China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bts Tactical Fixed and Fidelity China Region, you can compare the effects of market volatilities on Bts Tactical and Fidelity China 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 Bts Tactical with a short position of Fidelity China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bts Tactical and Fidelity China.
Diversification Opportunities for Bts Tactical and Fidelity China
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bts and Fidelity is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bts Tactical Fixed and Fidelity China Region in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity China Region and Bts Tactical 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 Bts Tactical Fixed are associated (or correlated) with Fidelity China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity China Region has no effect on the direction of Bts Tactical i.e., Bts Tactical and Fidelity China go up and down completely randomly.
Pair Corralation between Bts Tactical and Fidelity China
Assuming the 90 days horizon Bts Tactical is expected to generate 2.74 times less return on investment than Fidelity China. But when comparing it to its historical volatility, Bts Tactical Fixed is 5.12 times less risky than Fidelity China. It trades about 0.21 of its potential returns per unit of risk. Fidelity China Region is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,791 in Fidelity China Region on November 3, 2024 and sell it today you would earn a total of 115.00 from holding Fidelity China Region or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bts Tactical Fixed vs. Fidelity China Region
Performance |
| Timeline |
| Bts Tactical Fixed |
| Fidelity China Region |
Bts Tactical and Fidelity China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bts Tactical and Fidelity China
The main advantage of trading using opposite Bts Tactical and Fidelity China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bts Tactical position performs unexpectedly, Fidelity China 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 China will offset losses from the drop in Fidelity China's long position.| Bts Tactical vs. Prudential Financial Services | Bts Tactical vs. Vanguard Money Market | Bts Tactical vs. Ab Government Exchange | Bts Tactical vs. Schwab Government Money |
| Fidelity China vs. Franklin Emerging Market | Fidelity China vs. Artisan Developing World | Fidelity China vs. Rbc Emerging Markets | Fidelity China vs. Nasdaq 100 2x Strategy |
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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