Correlation Between Fidelity Canada and Fidelity Value
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity Value 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 Value 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 Value Fund, you can compare the effects of market volatilities on Fidelity Canada and Fidelity Value 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 Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity Value.
Diversification Opportunities for Fidelity Canada and Fidelity Value
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canada Fund and Fidelity Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Value 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 Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Value has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity Value go up and down completely randomly.
Pair Corralation between Fidelity Canada and Fidelity Value
Assuming the 90 days horizon Fidelity Canada Fund is expected to under-perform the Fidelity Value. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Canada Fund is 1.0 times less risky than Fidelity Value. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Fidelity Value Fund is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,654 in Fidelity Value Fund on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Fidelity Value Fund or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canada Fund vs. Fidelity Value Fund
Performance |
| Timeline |
| Fidelity Canada |
| Fidelity Value |
Fidelity Canada and Fidelity Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canada and Fidelity Value
The main advantage of trading using opposite Fidelity Canada and Fidelity Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity Value 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 Value will offset losses from the drop in Fidelity Value's long position.| Fidelity Canada vs. Alliancebernstein National Municipal | Fidelity Canada vs. The National Tax Free | Fidelity Canada vs. Transamerica Intermediate Muni | Fidelity Canada vs. Blrc Sgy Mnp |
| Fidelity Value vs. Fidelity Mid Cap Stock | Fidelity Value vs. Fidelity Low Priced Stock | Fidelity Value vs. Fidelity International Discovery | Fidelity Value vs. Fidelity Capital Appreciation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |