Correlation Between Mawer Global and Fidelity Global
Can any of the company-specific risk be diversified away by investing in both Mawer Global and Fidelity Global 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 Mawer Global and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mawer Global Equity and Fidelity Global Equity, you can compare the effects of market volatilities on Mawer Global and Fidelity Global 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 Mawer Global with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and Fidelity Global.
Diversification Opportunities for Mawer Global and Fidelity Global
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mawer and Fidelity is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Equity and Fidelity Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Equity and Mawer Global 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 Mawer Global Equity are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Equity has no effect on the direction of Mawer Global i.e., Mawer Global and Fidelity Global go up and down completely randomly.
Pair Corralation between Mawer Global and Fidelity Global
Assuming the 90 days trading horizon Mawer Global is expected to generate 1.45 times less return on investment than Fidelity Global. But when comparing it to its historical volatility, Mawer Global Equity is 1.09 times less risky than Fidelity Global. It trades about 0.09 of its potential returns per unit of risk. Fidelity Global Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,001 in Fidelity Global Equity on August 30, 2024 and sell it today you would earn a total of 99.00 from holding Fidelity Global Equity or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.99% |
| Values | Daily Returns |
Mawer Global Equity vs. Fidelity Global Equity
Performance |
| Timeline |
| Mawer Global Equity |
| Fidelity Global Equity |
Mawer Global and Fidelity Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Global and Fidelity Global
The main advantage of trading using opposite Mawer Global and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Global position performs unexpectedly, Fidelity Global 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 Global will offset losses from the drop in Fidelity Global's long position.| Mawer Global vs. RBC Select Balanced | Mawer Global vs. RBC Portefeuille de | Mawer Global vs. TD Comfort Balanced | Mawer Global vs. RBC Global Equity |
| Fidelity Global vs. RBC Select Balanced | Fidelity Global vs. RBC Portefeuille de | Fidelity Global vs. TD Comfort Balanced | Fidelity Global vs. RBC Global Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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