Correlation Between Fidelity Canada and Fidelity Leveraged
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity Leveraged 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 Canada and Fidelity Leveraged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Canada Fund and Fidelity Leveraged Pany, you can compare the effects of market volatilities on Fidelity Canada and Fidelity Leveraged 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 Canada with a short position of Fidelity Leveraged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity Leveraged.
Diversification Opportunities for Fidelity Canada and Fidelity Leveraged
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canada Fund and Fidelity Leveraged Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Leveraged Pany and Fidelity Canada 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 Canada Fund are associated (or correlated) with Fidelity Leveraged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Leveraged Pany has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity Leveraged go up and down completely randomly.
Pair Corralation between Fidelity Canada and Fidelity Leveraged
Assuming the 90 days horizon Fidelity Canada Fund is expected to generate 0.68 times more return on investment than Fidelity Leveraged. However, Fidelity Canada Fund is 1.48 times less risky than Fidelity Leveraged. It trades about -0.13 of its potential returns per unit of risk. Fidelity Leveraged Pany is currently generating about -0.1 per unit of risk. If you would invest 7,387 in Fidelity Canada Fund on December 2, 2024 and sell it today you would lose (620.00) from holding Fidelity Canada Fund or give up 8.39% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Canada Fund vs. Fidelity Leveraged Pany
Performance |
Timeline |
Fidelity Canada |
Fidelity Leveraged Pany |
Fidelity Canada and Fidelity Leveraged Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Canada and Fidelity Leveraged
The main advantage of trading using opposite Fidelity Canada and Fidelity Leveraged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity Leveraged 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 Leveraged will offset losses from the drop in Fidelity Leveraged's long position.Fidelity Canada vs. Fidelity Emerging Asia | Fidelity Canada vs. Fidelity Emerging Markets | Fidelity Canada vs. Fidelity China Region | Fidelity Canada vs. Fidelity Leveraged Pany |
Fidelity Leveraged vs. Fidelity Canada Fund | Fidelity Leveraged vs. Fidelity International Discovery | Fidelity Leveraged vs. Fidelity Value Fund | Fidelity Leveraged vs. Fidelity Emerging Markets |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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