Correlation Between Fidelity LongShort and CDSPI Petite
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By analyzing existing cross correlation between Fidelity LongShort Alternative and CDSPI petite cap, you can compare the effects of market volatilities on Fidelity LongShort and CDSPI Petite 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 LongShort with a short position of CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity LongShort and CDSPI Petite.
Diversification Opportunities for Fidelity LongShort and CDSPI Petite
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and CDSPI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity LongShort Alternative and CDSPI petite cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI petite cap and Fidelity LongShort 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 LongShort Alternative are associated (or correlated) with CDSPI Petite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI petite cap has no effect on the direction of Fidelity LongShort i.e., Fidelity LongShort and CDSPI Petite go up and down completely randomly.
Pair Corralation between Fidelity LongShort and CDSPI Petite
Assuming the 90 days trading horizon Fidelity LongShort is expected to generate 1.25 times less return on investment than CDSPI Petite. But when comparing it to its historical volatility, Fidelity LongShort Alternative is 1.47 times less risky than CDSPI Petite. It trades about 0.25 of its potential returns per unit of risk. CDSPI petite cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 7,152 in CDSPI petite cap on November 7, 2024 and sell it today you would earn a total of 332.00 from holding CDSPI petite cap or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Fidelity LongShort Alternative vs. CDSPI petite cap
Performance |
| Timeline |
| Fidelity LongShort |
| CDSPI petite cap |
Fidelity LongShort and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity LongShort and CDSPI Petite
The main advantage of trading using opposite Fidelity LongShort and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity LongShort position performs unexpectedly, CDSPI Petite 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 Petite will offset losses from the drop in CDSPI Petite's long position.| Fidelity LongShort vs. Fidelity Global Equity | Fidelity LongShort vs. Fidelity Global Value | Fidelity LongShort vs. Fidelity Momentum ETF | Fidelity LongShort vs. Fidelity Canadian High |
| CDSPI Petite vs. BMO Aggregate Bond | CDSPI Petite vs. iShares Canadian HYBrid | CDSPI Petite vs. Brompton European Dividend | CDSPI Petite vs. Solar Alliance Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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