Correlation Between Fidelity LongShort and IShares SPTSX
Can any of the company-specific risk be diversified away by investing in both Fidelity LongShort and IShares SPTSX 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 IShares SPTSX 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 iShares SPTSX 60, you can compare the effects of market volatilities on Fidelity LongShort and IShares SPTSX 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 IShares SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity LongShort and IShares SPTSX.
Diversification Opportunities for Fidelity LongShort and IShares SPTSX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity LongShort Alternative and iShares SPTSX 60 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SPTSX 60 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 IShares SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SPTSX 60 has no effect on the direction of Fidelity LongShort i.e., Fidelity LongShort and IShares SPTSX go up and down completely randomly.
Pair Corralation between Fidelity LongShort and IShares SPTSX
If you would invest 3,730 in iShares SPTSX 60 on November 8, 2024 and sell it today you would earn a total of 159.00 from holding iShares SPTSX 60 or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Fidelity LongShort Alternative vs. iShares SPTSX 60
Performance |
| Timeline |
| Fidelity LongShort |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| iShares SPTSX 60 |
Fidelity LongShort and IShares SPTSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity LongShort and IShares SPTSX
The main advantage of trading using opposite Fidelity LongShort and IShares SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity LongShort position performs unexpectedly, IShares SPTSX 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 IShares SPTSX will offset losses from the drop in IShares SPTSX'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 |
| IShares SPTSX vs. iShares Core SP | IShares SPTSX vs. iShares Core SPTSX | IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Capped |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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