Correlation Between Fidelity Advantage and Mackenzie Aggregate
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and Mackenzie Aggregate 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 Mackenzie Aggregate 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 Mackenzie Aggregate Bond, you can compare the effects of market volatilities on Fidelity Advantage and Mackenzie Aggregate 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 Mackenzie Aggregate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and Mackenzie Aggregate.
Diversification Opportunities for Fidelity Advantage and Mackenzie Aggregate
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Mackenzie is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and Mackenzie Aggregate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Aggregate Bond 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 Mackenzie Aggregate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Aggregate Bond has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and Mackenzie Aggregate go up and down completely randomly.
Pair Corralation between Fidelity Advantage and Mackenzie Aggregate
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 10.56 times more return on investment than Mackenzie Aggregate. However, Fidelity Advantage is 10.56 times more volatile than Mackenzie Aggregate Bond. It trades about 0.32 of its potential returns per unit of risk. Mackenzie Aggregate Bond is currently generating about 0.01 per unit of risk. If you would invest 3,205 in Fidelity Advantage Bitcoin on August 29, 2024 and sell it today you would earn a total of 1,033 from holding Fidelity Advantage Bitcoin or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advantage Bitcoin vs. Mackenzie Aggregate Bond
Performance |
| Timeline |
| Fidelity Advantage |
| Mackenzie Aggregate Bond |
Fidelity Advantage and Mackenzie Aggregate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and Mackenzie Aggregate
The main advantage of trading using opposite Fidelity Advantage and Mackenzie Aggregate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, Mackenzie Aggregate 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 Mackenzie Aggregate will offset losses from the drop in Mackenzie Aggregate's long position.| Fidelity Advantage vs. Fidelity Global Value | Fidelity Advantage vs. Fidelity Momentum ETF | Fidelity Advantage vs. Fidelity Canadian High | Fidelity Advantage vs. Fidelity All in One Balanced |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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