Correlation Between Fidelity Canadian and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Fidelity Canadian and RBC Quant 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 Canadian and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Canadian High and RBC Quant Dividend, you can compare the effects of market volatilities on Fidelity Canadian and RBC Quant 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 Canadian with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Canadian and RBC Quant.
Diversification Opportunities for Fidelity Canadian and RBC Quant
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidelity and RBC is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Canadian High and RBC Quant Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Dividend and Fidelity Canadian 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 Canadian High are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant Dividend has no effect on the direction of Fidelity Canadian i.e., Fidelity Canadian and RBC Quant go up and down completely randomly.
Pair Corralation between Fidelity Canadian and RBC Quant
Assuming the 90 days trading horizon Fidelity Canadian High is expected to generate 0.55 times more return on investment than RBC Quant. However, Fidelity Canadian High is 1.82 times less risky than RBC Quant. It trades about 0.23 of its potential returns per unit of risk. RBC Quant Dividend is currently generating about -0.03 per unit of risk. If you would invest 3,446 in Fidelity Canadian High on October 24, 2025 and sell it today you would earn a total of 254.00 from holding Fidelity Canadian High or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Canadian High vs. RBC Quant Dividend
Performance |
| Timeline |
| Fidelity Canadian High |
| RBC Quant Dividend |
Fidelity Canadian and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Canadian and RBC Quant
The main advantage of trading using opposite Fidelity Canadian and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Canadian position performs unexpectedly, RBC Quant 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 RBC Quant will offset losses from the drop in RBC Quant's long position.| Fidelity Canadian vs. Fidelity High Dividend | Fidelity Canadian vs. RBC Quant Canadian | Fidelity Canadian vs. iShares MSCI Europe | Fidelity Canadian vs. Fidelity International High |
| RBC Quant vs. RBC Quant Dividend | RBC Quant vs. RBC Quant EAFE | RBC Quant vs. iShares China | RBC Quant vs. Purpose Core Dividend |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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