Correlation Between Fidelity Canada and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity Sai 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 Canada and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Canada Fund and Fidelity Sai Canada, you can compare the effects of market volatilities on Fidelity Canada and Fidelity Sai 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 Canada with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity Sai.
Diversification Opportunities for Fidelity Canada and Fidelity Sai
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Fidelity is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canada Fund and Fidelity Sai Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Canada and Fidelity Canada 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 Canada Fund are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Canada has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity Sai go up and down completely randomly.
Pair Corralation between Fidelity Canada and Fidelity Sai
Assuming the 90 days horizon Fidelity Canada is expected to generate 1.29 times less return on investment than Fidelity Sai. But when comparing it to its historical volatility, Fidelity Canada Fund is 1.02 times less risky than Fidelity Sai. It trades about 0.16 of its potential returns per unit of risk. Fidelity Sai Canada is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Fidelity Sai Canada on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Fidelity Sai Canada or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canada Fund vs. Fidelity Sai Canada
Performance |
| Timeline |
| Fidelity Canada |
| Fidelity Sai Canada |
Fidelity Canada and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canada and Fidelity Sai
The main advantage of trading using opposite Fidelity Canada and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity Sai 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 Sai will offset losses from the drop in Fidelity Sai's long position.| Fidelity Canada vs. Dimensional Retirement Income | Fidelity Canada vs. Franklin Lifesmart Retirement | Fidelity Canada vs. Calvert Moderate Allocation | Fidelity Canada vs. Transamerica Cleartrack Retirement |
| Fidelity Sai vs. Fidelity Freedom 2015 | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Pennsylvania Municipal |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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