Correlation Between Asia Pacific and Fidelity Canada
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and Fidelity Canada 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 Asia Pacific and Fidelity Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Pacific Small and Fidelity Canada Fund, you can compare the effects of market volatilities on Asia Pacific and Fidelity Canada 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 Asia Pacific with a short position of Fidelity Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and Fidelity Canada.
Diversification Opportunities for Asia Pacific and Fidelity Canada
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Fidelity is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Small and Fidelity Canada Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canada and Asia Pacific 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 Asia Pacific Small are associated (or correlated) with Fidelity Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canada has no effect on the direction of Asia Pacific i.e., Asia Pacific and Fidelity Canada go up and down completely randomly.
Pair Corralation between Asia Pacific and Fidelity Canada
Assuming the 90 days horizon Asia Pacific is expected to generate 1.25 times less return on investment than Fidelity Canada. In addition to that, Asia Pacific is 1.64 times more volatile than Fidelity Canada Fund. It trades about 0.08 of its total potential returns per unit of risk. Fidelity Canada Fund is currently generating about 0.16 per unit of volatility. If you would invest 6,990 in Fidelity Canada Fund on September 2, 2024 and sell it today you would earn a total of 473.00 from holding Fidelity Canada Fund or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Pacific Small vs. Fidelity Canada Fund
Performance |
| Timeline |
| Asia Pacific Small |
| Fidelity Canada |
Asia Pacific and Fidelity Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and Fidelity Canada
The main advantage of trading using opposite Asia Pacific and Fidelity Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, Fidelity Canada 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 Canada will offset losses from the drop in Fidelity Canada's long position.| Asia Pacific vs. Dreyfus Natural Resources | Asia Pacific vs. Alpsalerian Energy Infrastructure | Asia Pacific vs. Hennessy Bp Energy | Asia Pacific vs. Ivy Energy Fund |
| Fidelity Canada vs. Multisector Bond Sma | Fidelity Canada vs. Ab Bond Inflation | Fidelity Canada vs. Blrc Sgy Mnp | Fidelity Canada vs. Oklahoma Municipal Fund |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |