Correlation Between Fidelity Canada and Fidelity Series

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity Canada and Fidelity Series 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 Series 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 Series Canada, you can compare the effects of market volatilities on Fidelity Canada and Fidelity Series 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 Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canada and Fidelity Series.

Diversification Opportunities for Fidelity Canada and Fidelity Series

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Fidelity and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY CANADA FUND and Fidelity Series Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Canada 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 Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Canada has no effect on the direction of Fidelity Canada i.e., Fidelity Canada and Fidelity Series go up and down completely randomly.

Pair Corralation between Fidelity Canada and Fidelity Series

Assuming the 90 days horizon Fidelity Canada is expected to generate 1.22 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Fidelity Canada Fund is 1.01 times less risky than Fidelity Series. It trades about 0.15 of its potential returns per unit of risk. Fidelity Series Canada is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,487  in Fidelity Series Canada on December 29, 2023 and sell it today you would earn a total of  42.00  from holding Fidelity Series Canada or generate 2.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

FIDELITY CANADA FUND  vs.  Fidelity Series Canada

 Performance 
       Timeline  
Fidelity Canada Fund 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Canada Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Canada is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity Series Canada 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series Canada are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Canada and Fidelity Series Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Canada and Fidelity Series

The main advantage of trading using opposite Fidelity Canada and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canada position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.
The idea behind Fidelity Canada Fund and Fidelity Series Canada 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.
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals