Correlation Between Fidelity Nordic and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Fidelity Nordic and Fidelity Series 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 Nordic and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Nordic Fund and Fidelity Series Canada, you can compare the effects of market volatilities on Fidelity Nordic and Fidelity Series 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 Nordic with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Nordic and Fidelity Series.
Diversification Opportunities for Fidelity Nordic and Fidelity Series
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Fidelity is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Nordic Fund and Fidelity Series Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Canada and Fidelity Nordic 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 Nordic Fund are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Canada has no effect on the direction of Fidelity Nordic i.e., Fidelity Nordic and Fidelity Series go up and down completely randomly.
Pair Corralation between Fidelity Nordic and Fidelity Series
Assuming the 90 days horizon Fidelity Nordic Fund is expected to under-perform the Fidelity Series. In addition to that, Fidelity Nordic is 1.43 times more volatile than Fidelity Series Canada. It trades about -0.18 of its total potential returns per unit of risk. Fidelity Series Canada is currently generating about 0.21 per unit of volatility. If you would invest 1,645 in Fidelity Series Canada on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Fidelity Series Canada or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Nordic Fund vs. Fidelity Series Canada
Performance |
| Timeline |
| Fidelity Nordic |
| Fidelity Series Canada |
Fidelity Nordic and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Nordic and Fidelity Series
The main advantage of trading using opposite Fidelity Nordic and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Nordic position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Fidelity Nordic vs. Fidelity Series Canada | Fidelity Nordic vs. Fidelity Canada Fund | Fidelity Nordic vs. Fidelity Canada Fund | Fidelity Nordic vs. Fidelity Canada Fund |
| Fidelity Series vs. California High Yield Municipal | Fidelity Series vs. Ab Impact Municipal | Fidelity Series vs. Federated Ohio Municipal | Fidelity Series vs. The National Tax Free |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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