Correlation Between Fidelity Advantage and CI Preferred
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and CI Preferred 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 Fidelity Advantage and CI Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Bitcoin and CI Preferred Share, you can compare the effects of market volatilities on Fidelity Advantage and CI Preferred 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 Fidelity Advantage with a short position of CI Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and CI Preferred.
Diversification Opportunities for Fidelity Advantage and CI Preferred
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and FPR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and CI Preferred Share in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Preferred Share and Fidelity Advantage 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 Fidelity Advantage Bitcoin are associated (or correlated) with CI Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Preferred Share has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and CI Preferred go up and down completely randomly.
Pair Corralation between Fidelity Advantage and CI Preferred
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 9.12 times more return on investment than CI Preferred. However, Fidelity Advantage is 9.12 times more volatile than CI Preferred Share. It trades about 0.34 of its potential returns per unit of risk. CI Preferred Share is currently generating about 0.07 per unit of risk. If you would invest 3,308 in Fidelity Advantage Bitcoin on August 31, 2024 and sell it today you would earn a total of 1,209 from holding Fidelity Advantage Bitcoin or generate 36.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Advantage Bitcoin vs. CI Preferred Share
Performance |
Timeline |
Fidelity Advantage |
CI Preferred Share |
Fidelity Advantage and CI Preferred Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advantage and CI Preferred
The main advantage of trading using opposite Fidelity Advantage and CI Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, CI Preferred 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 CI Preferred will offset losses from the drop in CI Preferred's long position.Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. 3iQ CoinShares Ether | Fidelity Advantage vs. Forstrong Global Income | Fidelity Advantage vs. BMO Aggregate Bond |
CI Preferred vs. BMO Covered Call | CI Preferred vs. Forstrong Global Income | CI Preferred vs. BMO Aggregate Bond | CI Preferred 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Transaction History View history of all your transactions and understand their impact on performance | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |