Correlation Between Fidelity International and Fidelity Canadian
Can any of the company-specific risk be diversified away by investing in both Fidelity International and Fidelity Canadian 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 International and Fidelity Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Value and Fidelity Canadian High, you can compare the effects of market volatilities on Fidelity International and Fidelity Canadian 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 International with a short position of Fidelity Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Fidelity Canadian.
Diversification Opportunities for Fidelity International and Fidelity Canadian
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Fidelity is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Value and Fidelity Canadian High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canadian High and Fidelity International 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 International Value are associated (or correlated) with Fidelity Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canadian High has no effect on the direction of Fidelity International i.e., Fidelity International and Fidelity Canadian go up and down completely randomly.
Pair Corralation between Fidelity International and Fidelity Canadian
Assuming the 90 days trading horizon Fidelity International is expected to generate 1.21 times less return on investment than Fidelity Canadian. In addition to that, Fidelity International is 1.16 times more volatile than Fidelity Canadian High. It trades about 0.06 of its total potential returns per unit of risk. Fidelity Canadian High is currently generating about 0.08 per unit of volatility. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity International Value vs. Fidelity Canadian High
Performance |
| Timeline |
| Fidelity International |
| Fidelity Canadian High |
Fidelity International and Fidelity Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Fidelity Canadian
The main advantage of trading using opposite Fidelity International and Fidelity Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, Fidelity Canadian 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 Fidelity Canadian will offset losses from the drop in Fidelity Canadian's long position.| Fidelity International vs. CIBC Global Growth | Fidelity International vs. CIBC Flexible Yield | Fidelity International vs. CIBC Active Investment | Fidelity International vs. CIBC Conservative Fixed |
| Fidelity Canadian vs. Fidelity Value ETF | Fidelity Canadian vs. Fidelity Canadian High | Fidelity Canadian vs. Fidelity High Quality | Fidelity Canadian vs. Fidelity International Value |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |