Correlation Between Ab Select and Fidelity Canada
Can any of the company-specific risk be diversified away by investing in both Ab Select and Fidelity Canada 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 Ab Select and Fidelity Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Fidelity Canada Fund, you can compare the effects of market volatilities on Ab Select and Fidelity Canada 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 Ab Select with a short position of Fidelity Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Fidelity Canada.
Diversification Opportunities for Ab Select and Fidelity Canada
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUUIX and Fidelity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Fidelity Canada Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canada and Ab Select 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 Ab Select Equity are associated (or correlated) with Fidelity Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canada has no effect on the direction of Ab Select i.e., Ab Select and Fidelity Canada go up and down completely randomly.
Pair Corralation between Ab Select and Fidelity Canada
Assuming the 90 days horizon Ab Select Equity is expected to generate 0.93 times more return on investment than Fidelity Canada. However, Ab Select Equity is 1.07 times less risky than Fidelity Canada. It trades about 0.23 of its potential returns per unit of risk. Fidelity Canada Fund is currently generating about 0.08 per unit of risk. If you would invest 2,260 in Ab Select Equity on June 12, 2025 and sell it today you would earn a total of 184.00 from holding Ab Select Equity or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Fidelity Canada Fund
Performance |
| Timeline |
| Ab Select Equity |
| Fidelity Canada |
Ab Select and Fidelity Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Fidelity Canada
The main advantage of trading using opposite Ab Select and Fidelity Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Fidelity Canada 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 Canada will offset losses from the drop in Fidelity Canada's long position.| Ab Select vs. Tax Managed Large Cap | Ab Select vs. Semiconductor Ultrasector Profund | Ab Select vs. Old Westbury Large | Ab Select vs. Qs Growth Fund |
| Fidelity Canada vs. Calvert Global Energy | Fidelity Canada vs. Ab Global Risk | Fidelity Canada vs. Alliancebernstein Global Highome | Fidelity Canada vs. Ms Global Fixed |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |