Correlation Between James Balanced and Fidelity Canada
Can any of the company-specific risk be diversified away by investing in both James Balanced and Fidelity Canada 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 James Balanced and Fidelity Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Fidelity Canada Fund, you can compare the effects of market volatilities on James Balanced and Fidelity Canada 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 James Balanced with a short position of Fidelity Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Fidelity Canada.
Diversification Opportunities for James Balanced and Fidelity Canada
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Fidelity Canada Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canada and James Balanced 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 James Balanced Golden are associated (or correlated) with Fidelity Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canada has no effect on the direction of James Balanced i.e., James Balanced and Fidelity Canada go up and down completely randomly.
Pair Corralation between James Balanced and Fidelity Canada
Assuming the 90 days horizon James Balanced is expected to generate 1.28 times less return on investment than Fidelity Canada. But when comparing it to its historical volatility, James Balanced Golden is 1.73 times less risky than Fidelity Canada. It trades about 0.11 of its potential returns per unit of risk. Fidelity Canada Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,186 in Fidelity Canada Fund on September 12, 2024 and sell it today you would earn a total of 1,062 from holding Fidelity Canada Fund or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Fidelity Canada Fund
Performance |
| Timeline |
| James Balanced Golden |
| Fidelity Canada |
James Balanced and Fidelity Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Fidelity Canada
The main advantage of trading using opposite James Balanced and Fidelity Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Fidelity Canada 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 Canada will offset losses from the drop in Fidelity Canada's long position.| James Balanced vs. Permanent Portfolio Class | James Balanced vs. Berwyn Income Fund | James Balanced vs. Large Cap Fund |
| Fidelity Canada vs. Fulcrum Diversified Absolute | Fidelity Canada vs. Allianzgi Diversified Income | Fidelity Canada vs. Stone Ridge Diversified | Fidelity Canada vs. Fidelity Advisor Diversified |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |