Correlation Between Fidelity High and Guardian Canadian

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

By analyzing existing cross correlation between Fidelity High Quality and Guardian Canadian Focused, you can compare the effects of market volatilities on Fidelity High and Guardian Canadian 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 High with a short position of Guardian Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity High and Guardian Canadian.

Diversification Opportunities for Fidelity High and Guardian Canadian

0.0

Correlation Coefficient

Fidelity High  Guardian Canadian

Pay attention - limited upside

The 3 months correlation between Fidelity and Guardian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity High Quality and Guardian Canadian Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Canadian Focused and Fidelity High 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 High Quality are associated (or correlated) with Guardian Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Canadian Focused has no effect on the direction of Fidelity High i.e., Fidelity High and Guardian Canadian go up and down completely randomly.

Pair Corralation between Fidelity High and Guardian Canadian

If you would invest  5,891  in Fidelity High Quality on April 23, 2025 and sell it today you would earn a total of  645.00  from holding Fidelity High Quality or generate 10.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fidelity High Quality  vs.  Guardian Canadian Focused

Fidelity High Quality

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity High Quality are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fidelity High may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Guardian Canadian Focused

Risk-Adjusted Performance

Very Strong

Over the last 90 days Guardian Canadian Focused has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Guardian Canadian is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fidelity High and Guardian Canadian

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

The idea behind Fidelity High Quality and Guardian Canadian Focused 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..