Correlation Between Fidelity Advantage and IShares India
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and IShares India 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 IShares India 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 iShares India Index, you can compare the effects of market volatilities on Fidelity Advantage and IShares India 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 IShares India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and IShares India.
Diversification Opportunities for Fidelity Advantage and IShares India
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and IShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and iShares India Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares India Index 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 IShares India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares India Index has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and IShares India go up and down completely randomly.
Pair Corralation between Fidelity Advantage and IShares India
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 4.71 times more return on investment than IShares India. However, Fidelity Advantage is 4.71 times more volatile than iShares India Index. It trades about 0.38 of its potential returns per unit of risk. iShares India Index is currently generating about 0.01 per unit of risk. If you would invest 3,226 in Fidelity Advantage Bitcoin on September 1, 2024 and sell it today you would earn a total of 1,291 from holding Fidelity Advantage Bitcoin or generate 40.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity Advantage Bitcoin vs. iShares India Index
Performance |
| Timeline |
| Fidelity Advantage |
| iShares India Index |
Fidelity Advantage and IShares India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and IShares India
The main advantage of trading using opposite Fidelity Advantage and IShares India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, IShares India 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 IShares India will offset losses from the drop in IShares India's long position.| Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. 3iQ CoinShares Ether | Fidelity Advantage vs. Forstrong Global Income | Fidelity Advantage vs. BMO Aggregate Bond |
| IShares India vs. iShares MSCI Emerging | IShares India vs. iShares Global Infrastructure | IShares India vs. iShares IG Corporate | IShares India vs. iShares Global Real |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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