Correlation Between Fidelity Advantage and 3iQ Bitcoin
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and 3iQ Bitcoin 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 3iQ Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Ether and 3iQ Bitcoin ETF, you can compare the effects of market volatilities on Fidelity Advantage and 3iQ Bitcoin 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 3iQ Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and 3iQ Bitcoin.
Diversification Opportunities for Fidelity Advantage and 3iQ Bitcoin
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and 3iQ is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Ether and 3iQ Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3iQ Bitcoin ETF 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 Ether are associated (or correlated) with 3iQ Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3iQ Bitcoin ETF has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and 3iQ Bitcoin go up and down completely randomly.
Pair Corralation between Fidelity Advantage and 3iQ Bitcoin
Assuming the 90 days trading horizon Fidelity Advantage Ether is expected to generate 1.86 times more return on investment than 3iQ Bitcoin. However, Fidelity Advantage is 1.86 times more volatile than 3iQ Bitcoin ETF. It trades about 0.07 of its potential returns per unit of risk. 3iQ Bitcoin ETF is currently generating about 0.12 per unit of risk. If you would invest 3,882 in Fidelity Advantage Ether on September 14, 2024 and sell it today you would earn a total of 3,526 from holding Fidelity Advantage Ether or generate 90.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advantage Ether vs. 3iQ Bitcoin ETF
Performance |
| Timeline |
| Fidelity Advantage Ether |
| 3iQ Bitcoin ETF |
Fidelity Advantage and 3iQ Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and 3iQ Bitcoin
The main advantage of trading using opposite Fidelity Advantage and 3iQ Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, 3iQ Bitcoin 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 3iQ Bitcoin will offset losses from the drop in 3iQ Bitcoin's long position.| Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. Purpose Bitcoin CAD | Fidelity Advantage vs. BMO Aggregate Bond | Fidelity Advantage vs. iShares Canadian HYBrid |
| 3iQ Bitcoin vs. Purpose Bitcoin CAD | 3iQ Bitcoin vs. BMO Aggregate Bond | 3iQ Bitcoin vs. iShares Canadian HYBrid | 3iQ Bitcoin vs. Brompton European Dividend |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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