Correlation Between CI Canadian and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both CI Canadian and Fidelity Advantage 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 CI Canadian and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canadian REIT and Fidelity Advantage Bitcoin, you can compare the effects of market volatilities on CI Canadian and Fidelity Advantage 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 CI Canadian with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canadian and Fidelity Advantage.
Diversification Opportunities for CI Canadian and Fidelity Advantage
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RIT and Fidelity is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CI Canadian REIT and Fidelity Advantage Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage and CI Canadian 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 CI Canadian REIT are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage has no effect on the direction of CI Canadian i.e., CI Canadian and Fidelity Advantage go up and down completely randomly.
Pair Corralation between CI Canadian and Fidelity Advantage
Assuming the 90 days trading horizon CI Canadian REIT is expected to under-perform the Fidelity Advantage. But the etf apears to be less risky and, when comparing its historical volatility, CI Canadian REIT is 5.09 times less risky than Fidelity Advantage. The etf trades about -0.06 of its potential returns per unit of risk. The Fidelity Advantage Bitcoin is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,137 in Fidelity Advantage Bitcoin on September 13, 2024 and sell it today you would earn a total of 619.00 from holding Fidelity Advantage Bitcoin or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Canadian REIT vs. Fidelity Advantage Bitcoin
Performance |
| Timeline |
| CI Canadian REIT |
| Fidelity Advantage |
CI Canadian and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canadian and Fidelity Advantage
The main advantage of trading using opposite CI Canadian and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canadian position performs unexpectedly, Fidelity Advantage 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 Advantage will offset losses from the drop in Fidelity Advantage's long position.| CI Canadian vs. BMO Equal Weight | CI Canadian vs. Vanguard FTSE Canadian | CI Canadian vs. iShares SPTSX Capped | CI Canadian vs. BMO Equal Weight |
| Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. Purpose Bitcoin CAD | Fidelity Advantage vs. BMO Aggregate Bond | Fidelity Advantage vs. iShares Canadian HYBrid |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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