Correlation Between Fidelity Canada and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity International 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 International 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 International Discovery, you can compare the effects of market volatilities on Fidelity Canada and Fidelity International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity International.
Diversification Opportunities for Fidelity Canada and Fidelity International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Fidelity is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canada Fund and Fidelity International Discove in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity International go up and down completely randomly.
Pair Corralation between Fidelity Canada and Fidelity International
Assuming the 90 days horizon Fidelity Canada Fund is expected to generate 1.0 times more return on investment than Fidelity International. However, Fidelity Canada Fund is 1.0 times less risky than Fidelity International. It trades about 0.18 of its potential returns per unit of risk. Fidelity International Discovery is currently generating about -0.06 per unit of risk. If you would invest 7,222 in Fidelity Canada Fund on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Fidelity Canada Fund or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canada Fund vs. Fidelity International Discove
Performance |
| Timeline |
| Fidelity Canada |
| Fidelity International |
Fidelity Canada and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canada and Fidelity International
The main advantage of trading using opposite Fidelity Canada and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| Fidelity Canada vs. Fidelity Emerging Asia | Fidelity Canada vs. Fidelity Emerging Markets | Fidelity Canada vs. Fidelity China Region | Fidelity Canada vs. Fidelity Leveraged Pany |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |