Correlation Between Fidelity Canadian and IShares Jantzi
Can any of the company-specific risk be diversified away by investing in both Fidelity Canadian and IShares Jantzi 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 Canadian and IShares Jantzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Canadian High and iShares Jantzi Social, you can compare the effects of market volatilities on Fidelity Canadian and IShares Jantzi 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 Canadian with a short position of IShares Jantzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canadian and IShares Jantzi.
Diversification Opportunities for Fidelity Canadian and IShares Jantzi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and IShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canadian High and iShares Jantzi Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Jantzi Social and Fidelity Canadian 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 Canadian High are associated (or correlated) with IShares Jantzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Jantzi Social has no effect on the direction of Fidelity Canadian i.e., Fidelity Canadian and IShares Jantzi go up and down completely randomly.
Pair Corralation between Fidelity Canadian and IShares Jantzi
Assuming the 90 days trading horizon Fidelity Canadian High is expected to generate 0.87 times more return on investment than IShares Jantzi. However, Fidelity Canadian High is 1.15 times less risky than IShares Jantzi. It trades about 0.08 of its potential returns per unit of risk. iShares Jantzi Social is currently generating about 0.06 per unit of risk. If you would invest 2,925 in Fidelity Canadian High on October 21, 2024 and sell it today you would earn a total of 866.00 from holding Fidelity Canadian High or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canadian High vs. iShares Jantzi Social
Performance |
| Timeline |
| Fidelity Canadian High |
| iShares Jantzi Social |
Fidelity Canadian and IShares Jantzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canadian and IShares Jantzi
The main advantage of trading using opposite Fidelity Canadian and IShares Jantzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canadian position performs unexpectedly, IShares Jantzi 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 Jantzi will offset losses from the drop in IShares Jantzi's long position.| Fidelity Canadian vs. Fidelity Value ETF | Fidelity Canadian vs. Fidelity Canadian High | Fidelity Canadian vs. Fidelity High Quality | Fidelity Canadian vs. Fidelity International Value |
| IShares Jantzi vs. Fidelity Value ETF | IShares Jantzi vs. Fidelity Canadian High | IShares Jantzi vs. Fidelity Canadian High | IShares Jantzi vs. Fidelity High Quality |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |