Correlation Between IShares Canadian and Fidelity Global
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By analyzing existing cross correlation between iShares Canadian HYBrid and Fidelity Global Innovators, you can compare the effects of market volatilities on IShares Canadian 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 IShares Canadian with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Fidelity Global.
Diversification Opportunities for IShares Canadian and Fidelity Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Fidelity Global Innovators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Inno and IShares 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 iShares Canadian HYBrid 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 Inno has no effect on the direction of IShares Canadian i.e., IShares Canadian and Fidelity Global go up and down completely randomly.
Pair Corralation between IShares Canadian and Fidelity Global
Assuming the 90 days trading horizon IShares Canadian is expected to generate 2.53 times less return on investment than Fidelity Global. But when comparing it to its historical volatility, iShares Canadian HYBrid is 4.29 times less risky than Fidelity Global. It trades about 0.18 of its potential returns per unit of risk. Fidelity Global Innovators is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,489 in Fidelity Global Innovators on September 1, 2024 and sell it today you would earn a total of 554.00 from holding Fidelity Global Innovators or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Fidelity Global Innovators
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Fidelity Global Inno |
IShares Canadian and Fidelity Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Fidelity Global
The main advantage of trading using opposite IShares Canadian and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian 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.| IShares Canadian vs. Global X Active | IShares Canadian vs. Brompton Flaherty Crumrine | IShares Canadian vs. CIBC Core Fixed | IShares Canadian vs. BMO Aggregate Bond |
| Fidelity Global vs. Tech Leaders Income | Fidelity Global vs. Brompton Global Dividend | Fidelity Global vs. Forstrong Global Income | Fidelity Global 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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