Correlation Between CI Canada and Fidelity All
Can any of the company-specific risk be diversified away by investing in both CI Canada and Fidelity All 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 CI Canada and Fidelity All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canada Lifeco and Fidelity All in One Balanced, you can compare the effects of market volatilities on CI Canada and Fidelity All 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 CI Canada with a short position of Fidelity All. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canada and Fidelity All.
Diversification Opportunities for CI Canada and Fidelity All
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FLI and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CI Canada Lifeco and Fidelity All in One Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity All in and CI 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 CI Canada Lifeco are associated (or correlated) with Fidelity All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity All in has no effect on the direction of CI Canada i.e., CI Canada and Fidelity All go up and down completely randomly.
Pair Corralation between CI Canada and Fidelity All
Assuming the 90 days trading horizon CI Canada Lifeco is expected to under-perform the Fidelity All. In addition to that, CI Canada is 1.85 times more volatile than Fidelity All in One Balanced. It trades about -0.15 of its total potential returns per unit of risk. Fidelity All in One Balanced is currently generating about 0.2 per unit of volatility. If you would invest 1,310 in Fidelity All in One Balanced on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Fidelity All in One Balanced or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Canada Lifeco vs. Fidelity All in One Balanced
Performance |
| Timeline |
| CI Canada Lifeco |
| Fidelity All in |
CI Canada and Fidelity All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canada and Fidelity All
The main advantage of trading using opposite CI Canada and Fidelity All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canada position performs unexpectedly, Fidelity All 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 All will offset losses from the drop in Fidelity All's long position.| CI Canada vs. First Asset Energy | CI Canada vs. CI Gold Giants | CI Canada vs. Harvest Equal Weight | CI Canada vs. First Asset Tech |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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