Correlation Between Fidelity Canada and Fidelity Total
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity Total 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 Fidelity Canada and Fidelity Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Canada Fund and Fidelity Total Bond, you can compare the effects of market volatilities on Fidelity Canada and Fidelity Total 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 Canada with a short position of Fidelity Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity Total.
Diversification Opportunities for Fidelity Canada and Fidelity Total
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canada Fund and Fidelity Total Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Total Bond and Fidelity Canada 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 Canada Fund are associated (or correlated) with Fidelity Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Total Bond has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity Total go up and down completely randomly.
Pair Corralation between Fidelity Canada and Fidelity Total
Assuming the 90 days horizon Fidelity Canada Fund is expected to generate 2.63 times more return on investment than Fidelity Total. However, Fidelity Canada is 2.63 times more volatile than Fidelity Total Bond. It trades about 0.11 of its potential returns per unit of risk. Fidelity Total Bond is currently generating about 0.05 per unit of risk. If you would invest 6,573 in Fidelity Canada Fund on November 3, 2024 and sell it today you would earn a total of 113.00 from holding Fidelity Canada Fund or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canada Fund vs. Fidelity Total Bond
Performance |
| Timeline |
| Fidelity Canada |
| Fidelity Total Bond |
Fidelity Canada and Fidelity Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canada and Fidelity Total
The main advantage of trading using opposite Fidelity Canada and Fidelity Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity Total 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 Total will offset losses from the drop in Fidelity Total's long position.| Fidelity Canada vs. Ab Bond Inflation | Fidelity Canada vs. Guggenheim Managed Futures | Fidelity Canada vs. Ab Bond Inflation | Fidelity Canada vs. Tiaa Cref Inflation Linked Bond |
| Fidelity Total vs. Small Pany Growth | Fidelity Total vs. Touchstone Small Cap | Fidelity Total vs. Hunter Small Cap | Fidelity Total vs. Rbc Small Cap |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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