Correlation Between CI Black and Fidelity Tactical

Can any of the company-specific risk be diversified away by investing in both CI Black and Fidelity Tactical 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 Black and Fidelity Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CI Black Creek and Fidelity Tactical High, you can compare the effects of market volatilities on CI Black and Fidelity Tactical 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 Black with a short position of Fidelity Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Black and Fidelity Tactical.

Diversification Opportunities for CI Black and Fidelity Tactical

-0.37

Correlation Coefficient

CI Black  Fidelity Tactical

Very good diversification

The 3 months correlation between 0P0000752C and Fidelity is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CI Black Creek and Fidelity Tactical High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Tactical High and CI Black 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 Black Creek are associated (or correlated) with Fidelity Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Tactical High has no effect on the direction of CI Black i.e., CI Black and Fidelity Tactical go up and down completely randomly.

Pair Corralation between CI Black and Fidelity Tactical

Assuming the 90 days trading horizon CI Black Creek is expected to under-perform the Fidelity Tactical. In addition to that, CI Black is 1.43 times more volatile than Fidelity Tactical High. It trades about -0.06 of its total potential returns per unit of risk. Fidelity Tactical High is currently generating about 0.14 per unit of volatility. If you would invest  1,032  in Fidelity Tactical High on November 20, 2024 and sell it today you would earn a total of  64.00  from holding Fidelity Tactical High or generate 6.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CI Black Creek  vs.  Fidelity Tactical High

CI Black Creek

Risk-Adjusted Performance

Very Weak

Over the last 90 days CI Black Creek has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, CI Black is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Tactical High

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Tactical High are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Fidelity Tactical may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with CI Black and Fidelity Tactical

The main advantage of trading using opposite CI Black and Fidelity Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Black position performs unexpectedly, Fidelity Tactical 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 Tactical will offset losses from the drop in Fidelity Tactical's long position.

The idea behind CI Black Creek and Fidelity Tactical High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.