Correlation Between Fidelity Global and Mackenzie Balanced

Can any of the company-specific risk be diversified away by investing in both Fidelity Global and Mackenzie Balanced 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 Global and Mackenzie Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidelity Global Monthly and Mackenzie Balanced Allocation, you can compare the effects of market volatilities on Fidelity Global and Mackenzie Balanced 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 Global with a short position of Mackenzie Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Global and Mackenzie Balanced.

Diversification Opportunities for Fidelity Global and Mackenzie Balanced

0.96

Correlation Coefficient

Fidelity Global  Mackenzie Balanced

Almost no diversification

The 3 months correlation between Fidelity and Mackenzie is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Global Monthly and Mackenzie Balanced Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Balanced and Fidelity Global 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 Global Monthly are associated (or correlated) with Mackenzie Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Balanced has no effect on the direction of Fidelity Global i.e., Fidelity Global and Mackenzie Balanced go up and down completely randomly.

Pair Corralation between Fidelity Global and Mackenzie Balanced

Assuming the 90 days trading horizon Fidelity Global is expected to generate 1.51 times less return on investment than Mackenzie Balanced. But when comparing it to its historical volatility, Fidelity Global Monthly is 1.41 times less risky than Mackenzie Balanced. It trades about 0.31 of its potential returns per unit of risk. Mackenzie Balanced Allocation is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  2,394  in Mackenzie Balanced Allocation on April 23, 2025 and sell it today you would earn a total of  253.00  from holding Mackenzie Balanced Allocation or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Fidelity Global Monthly  vs.  Mackenzie Balanced Allocation

Fidelity Global Monthly

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Global Monthly are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fidelity Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Mackenzie Balanced

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie Balanced Allocation are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Mackenzie Balanced may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fidelity Global and Mackenzie Balanced

The main advantage of trading using opposite Fidelity Global and Mackenzie Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Global position performs unexpectedly, Mackenzie Balanced 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 Mackenzie Balanced will offset losses from the drop in Mackenzie Balanced's long position.

The idea behind Fidelity Global Monthly and Mackenzie Balanced Allocation 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.