Correlation Between Fidelity Capital and Rbc China
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Rbc 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 Fidelity Capital and Rbc China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Capital Income and Rbc China Equity, you can compare the effects of market volatilities on Fidelity Capital and Rbc 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 Fidelity Capital with a short position of Rbc China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Rbc China.
Diversification Opportunities for Fidelity Capital and Rbc China
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Rbc is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Rbc China Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc China Equity and Fidelity Capital 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 Capital Income are associated (or correlated) with Rbc China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc China Equity has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Rbc China go up and down completely randomly.
Pair Corralation between Fidelity Capital and Rbc China
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 0.43 times more return on investment than Rbc China. However, Fidelity Capital Income is 2.35 times less risky than Rbc China. It trades about 0.14 of its potential returns per unit of risk. Rbc China Equity is currently generating about -0.03 per unit of risk. If you would invest 1,011 in Fidelity Capital Income on October 30, 2024 and sell it today you would earn a total of 13.00 from holding Fidelity Capital Income or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Rbc China Equity
Performance |
| Timeline |
| Fidelity Capital Income |
| Rbc China Equity |
Fidelity Capital and Rbc China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Rbc China
The main advantage of trading using opposite Fidelity Capital and Rbc China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Rbc 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 Rbc China will offset losses from the drop in Rbc China's long position.| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced Fund |
| Rbc China vs. Icon Information Technology | Rbc China vs. Technology Ultrasector Profund | Rbc China vs. Firsthand Technology Opportunities | Rbc China vs. Goldman Sachs Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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