Correlation Between CIBC Conservative and Fidelity International
Can any of the company-specific risk be diversified away by investing in both CIBC Conservative and Fidelity International 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 CIBC Conservative and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Conservative Fixed and Fidelity International Value, you can compare the effects of market volatilities on CIBC Conservative and Fidelity International 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 CIBC Conservative with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Conservative and Fidelity International.
Diversification Opportunities for CIBC Conservative and Fidelity International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIBC and Fidelity is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Conservative Fixed and Fidelity International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and CIBC Conservative 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 CIBC Conservative Fixed are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of CIBC Conservative i.e., CIBC Conservative and Fidelity International go up and down completely randomly.
Pair Corralation between CIBC Conservative and Fidelity International
Assuming the 90 days trading horizon CIBC Conservative is expected to generate 2.67 times less return on investment than Fidelity International. But when comparing it to its historical volatility, CIBC Conservative Fixed is 2.96 times less risky than Fidelity International. It trades about 0.08 of its potential returns per unit of risk. Fidelity International Value is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,800 in Fidelity International Value on November 2, 2024 and sell it today you would earn a total of 788.00 from holding Fidelity International Value or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIBC Conservative Fixed vs. Fidelity International Value
Performance |
| Timeline |
| CIBC Conservative Fixed |
| Fidelity International |
CIBC Conservative and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Conservative and Fidelity International
The main advantage of trading using opposite CIBC Conservative and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Conservative position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| CIBC Conservative vs. CIBC Core Fixed | CIBC Conservative vs. CIBC Canadian Equity | CIBC Conservative vs. CIBC Clean Energy | CIBC Conservative vs. CIBC Qx Low |
| Fidelity International vs. Fidelity Value ETF | Fidelity International vs. Fidelity Canadian Value | Fidelity International vs. Fidelity International High | Fidelity International vs. Fidelity High Quality |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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