Correlation Between Fidelity Advantage and Ninepoint Energy
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and Ninepoint Energy 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 Ninepoint Energy 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 Ninepoint Energy, you can compare the effects of market volatilities on Fidelity Advantage and Ninepoint Energy 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 Ninepoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and Ninepoint Energy.
Diversification Opportunities for Fidelity Advantage and Ninepoint Energy
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Ninepoint is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and Ninepoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninepoint Energy 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 Ninepoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninepoint Energy has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and Ninepoint Energy go up and down completely randomly.
Pair Corralation between Fidelity Advantage and Ninepoint Energy
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 1.55 times more return on investment than Ninepoint Energy. However, Fidelity Advantage is 1.55 times more volatile than Ninepoint Energy. It trades about 0.18 of its potential returns per unit of risk. Ninepoint Energy is currently generating about 0.1 per unit of risk. If you would invest 4,294 in Fidelity Advantage Bitcoin on April 23, 2025 and sell it today you would earn a total of 978.00 from holding Fidelity Advantage Bitcoin or generate 22.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
Fidelity Advantage Bitcoin vs. Ninepoint Energy
Performance |
Timeline |
Fidelity Advantage |
Ninepoint Energy |
Fidelity Advantage and Ninepoint Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advantage and Ninepoint Energy
The main advantage of trading using opposite Fidelity Advantage and Ninepoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, Ninepoint Energy 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 Ninepoint Energy will offset losses from the drop in Ninepoint Energy's long position.Fidelity Advantage vs. Fidelity Global Equity | Fidelity Advantage vs. Fidelity Global Value | Fidelity Advantage vs. Fidelity Momentum ETF | Fidelity Advantage vs. Fidelity Canadian High |
Ninepoint Energy vs. iShares SPTSX 60 | Ninepoint Energy vs. iShares Core SP | Ninepoint Energy vs. iShares Core SPTSX | Ninepoint Energy vs. BMO Aggregate Bond |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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