Correlation Between Fidelity Global and CDSPI Canadian
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By analyzing existing cross correlation between Fidelity Global Equity and CDSPI Canadian Equity, you can compare the effects of market volatilities on Fidelity Global and CDSPI 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 Global with a short position of CDSPI Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Global and CDSPI Canadian.
Diversification Opportunities for Fidelity Global and CDSPI Canadian
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and CDSPI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Global Equity and CDSPI Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI Canadian Equity and Fidelity Global 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 Global Equity are associated (or correlated) with CDSPI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI Canadian Equity has no effect on the direction of Fidelity Global i.e., Fidelity Global and CDSPI Canadian go up and down completely randomly.
Pair Corralation between Fidelity Global and CDSPI Canadian
Assuming the 90 days trading horizon Fidelity Global is expected to generate 1.1 times less return on investment than CDSPI Canadian. In addition to that, Fidelity Global is 1.48 times more volatile than CDSPI Canadian Equity. It trades about 0.28 of its total potential returns per unit of risk. CDSPI Canadian Equity is currently generating about 0.45 per unit of volatility. If you would invest 4,766 in CDSPI Canadian Equity on November 2, 2024 and sell it today you would earn a total of 209.00 from holding CDSPI Canadian Equity or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Fidelity Global Equity vs. CDSPI Canadian Equity
Performance |
| Timeline |
| Fidelity Global Equity |
| CDSPI Canadian Equity |
Fidelity Global and CDSPI Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Global and CDSPI Canadian
The main advantage of trading using opposite Fidelity Global and CDSPI Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Global position performs unexpectedly, CDSPI 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 CDSPI Canadian will offset losses from the drop in CDSPI Canadian's long position.| Fidelity Global vs. RBC Select Balanced | Fidelity Global vs. PIMCO Monthly Income | Fidelity Global vs. RBC Portefeuille de | Fidelity Global vs. Edgepoint Global Portfolio |
| CDSPI Canadian vs. Manulife Dividend Income | CDSPI Canadian vs. BMO Aggregate Bond | CDSPI Canadian vs. iShares Canadian HYBrid | CDSPI Canadian 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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