Correlation Between Fidelity Advantage and CI Gold
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and CI Gold 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 Advantage and CI Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Bitcoin and CI Gold Giants, you can compare the effects of market volatilities on Fidelity Advantage and CI Gold 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 Advantage with a short position of CI Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and CI Gold.
Diversification Opportunities for Fidelity Advantage and CI Gold
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and CGXF is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and CI Gold Giants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Gold Giants and Fidelity Advantage 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 Advantage Bitcoin are associated (or correlated) with CI Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Gold Giants has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and CI Gold go up and down completely randomly.
Pair Corralation between Fidelity Advantage and CI Gold
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 1.91 times more return on investment than CI Gold. However, Fidelity Advantage is 1.91 times more volatile than CI Gold Giants. It trades about 0.13 of its potential returns per unit of risk. CI Gold Giants is currently generating about 0.03 per unit of risk. If you would invest 1,312 in Fidelity Advantage Bitcoin on September 12, 2024 and sell it today you would earn a total of 3,216 from holding Fidelity Advantage Bitcoin or generate 245.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advantage Bitcoin vs. CI Gold Giants
Performance |
| Timeline |
| Fidelity Advantage |
| CI Gold Giants |
Fidelity Advantage and CI Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and CI Gold
The main advantage of trading using opposite Fidelity Advantage and CI Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, CI Gold 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 CI Gold will offset losses from the drop in CI Gold's long position.| Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. Purpose Bitcoin CAD | Fidelity Advantage vs. BMO Aggregate Bond | Fidelity Advantage vs. iShares Canadian HYBrid |
| CI Gold vs. First Asset Energy | CI Gold vs. First Asset Tech | CI Gold vs. Harvest Equal Weight | CI Gold vs. CI Canada Lifeco |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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