Correlation Between Fidelity Advantage and Scotia International
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and Scotia International 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 Scotia International 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 Scotia International Equity, you can compare the effects of market volatilities on Fidelity Advantage and Scotia International 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 Scotia International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and Scotia International.
Diversification Opportunities for Fidelity Advantage and Scotia International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Scotia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and Scotia International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotia International 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 Scotia International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotia International has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and Scotia International go up and down completely randomly.
Pair Corralation between Fidelity Advantage and Scotia International
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 5.31 times more return on investment than Scotia International. However, Fidelity Advantage is 5.31 times more volatile than Scotia International Equity. It trades about 0.12 of its potential returns per unit of risk. Scotia International Equity is currently generating about 0.09 per unit of risk. If you would invest 810.00 in Fidelity Advantage Bitcoin on September 5, 2024 and sell it today you would earn a total of 3,644 from holding Fidelity Advantage Bitcoin or generate 449.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advantage Bitcoin vs. Scotia International Equity
Performance |
| Timeline |
| Fidelity Advantage |
| Scotia International |
Fidelity Advantage and Scotia International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and Scotia International
The main advantage of trading using opposite Fidelity Advantage and Scotia International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, Scotia International 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 Scotia International will offset losses from the drop in Scotia International'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 |
| Scotia International vs. First Asset Energy | Scotia International vs. First Asset Tech | Scotia International vs. Harvest Equal Weight | Scotia International 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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