Correlation Between Fidelity LongShort and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both Fidelity LongShort and InPlay Oil 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 LongShort and InPlay Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity LongShort Alternative and InPlay Oil Corp, you can compare the effects of market volatilities on Fidelity LongShort and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity LongShort and InPlay Oil.
Diversification Opportunities for Fidelity LongShort and InPlay Oil
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and InPlay is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity LongShort Alternative and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of Fidelity LongShort i.e., Fidelity LongShort and InPlay Oil go up and down completely randomly.
Pair Corralation between Fidelity LongShort and InPlay Oil
Assuming the 90 days trading horizon Fidelity LongShort Alternative is expected to generate 0.3 times more return on investment than InPlay Oil. However, Fidelity LongShort Alternative is 3.32 times less risky than InPlay Oil. It trades about 0.24 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.1 per unit of risk. If you would invest 1,148 in Fidelity LongShort Alternative on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Fidelity LongShort Alternative or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity LongShort Alternative vs. InPlay Oil Corp
Performance |
| Timeline |
| Fidelity LongShort |
| InPlay Oil Corp |
Fidelity LongShort and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity LongShort and InPlay Oil
The main advantage of trading using opposite Fidelity LongShort and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity LongShort position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| Fidelity LongShort vs. iShares SPTSX 60 | Fidelity LongShort vs. iShares Core SP | Fidelity LongShort vs. iShares Core SPTSX | Fidelity LongShort vs. BMO Aggregate Bond |
| InPlay Oil vs. Gear Energy | InPlay Oil vs. Journey Energy | InPlay Oil vs. Yangarra Resources | InPlay Oil vs. Obsidian 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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