Correlation Between Fidelity Tactical and Bloom Select
Can any of the company-specific risk be diversified away by investing in both Fidelity Tactical and Bloom Select 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 Tactical and Bloom Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Tactical High and Bloom Select Income, you can compare the effects of market volatilities on Fidelity Tactical and Bloom Select 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 Tactical with a short position of Bloom Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Tactical and Bloom Select.
Diversification Opportunities for Fidelity Tactical and Bloom Select
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Bloom is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Tactical High and Bloom Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Select Income and Fidelity Tactical 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 Tactical High are associated (or correlated) with Bloom Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Select Income has no effect on the direction of Fidelity Tactical i.e., Fidelity Tactical and Bloom Select go up and down completely randomly.
Pair Corralation between Fidelity Tactical and Bloom Select
Assuming the 90 days trading horizon Fidelity Tactical High is expected to generate 0.31 times more return on investment than Bloom Select. However, Fidelity Tactical High is 3.2 times less risky than Bloom Select. It trades about 0.4 of its potential returns per unit of risk. Bloom Select Income is currently generating about -0.11 per unit of risk. If you would invest 1,046 in Fidelity Tactical High on August 28, 2024 and sell it today you would earn a total of 58.00 from holding Fidelity Tactical High or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Fidelity Tactical High vs. Bloom Select Income
Performance |
| Timeline |
| Fidelity Tactical High |
| Bloom Select Income |
Fidelity Tactical and Bloom Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Tactical and Bloom Select
The main advantage of trading using opposite Fidelity Tactical and Bloom Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Tactical position performs unexpectedly, Bloom Select 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 Bloom Select will offset losses from the drop in Bloom Select's long position.| Fidelity Tactical vs. RBC Select Balanced | Fidelity Tactical vs. RBC Portefeuille de | Fidelity Tactical vs. TD Comfort Balanced | Fidelity Tactical vs. RBC Global Equity |
| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
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.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |