Correlation Between Global X and Fidelity Canadian
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By analyzing existing cross correlation between Global X Active and Fidelity Canadian Growth, you can compare the effects of market volatilities on Global X and Fidelity 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 Global X with a short position of Fidelity Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Fidelity Canadian.
Diversification Opportunities for Global X and Fidelity Canadian
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Fidelity is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and Fidelity Canadian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Canadian Growth and Global X 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 Global X Active are associated (or correlated) with Fidelity Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Canadian Growth has no effect on the direction of Global X i.e., Global X and Fidelity Canadian go up and down completely randomly.
Pair Corralation between Global X and Fidelity Canadian
Assuming the 90 days trading horizon Global X is expected to generate 8.54 times less return on investment than Fidelity Canadian. But when comparing it to its historical volatility, Global X Active is 1.93 times less risky than Fidelity Canadian. It trades about 0.03 of its potential returns per unit of risk. Fidelity Canadian Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,097 in Fidelity Canadian Growth on August 26, 2024 and sell it today you would earn a total of 4,927 from holding Fidelity Canadian Growth or generate 60.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Active vs. Fidelity Canadian Growth
Performance |
| Timeline |
| Global X Active |
| Fidelity Canadian Growth |
Global X and Fidelity Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Fidelity Canadian
The main advantage of trading using opposite Global X and Fidelity Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Fidelity 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 Fidelity Canadian will offset losses from the drop in Fidelity Canadian's long position.| Global X vs. BetaPro Gold Bullion | Global X vs. BetaPro SP TSX | Global X vs. BetaPro SPTSX Capped | Global X vs. Global X Active |
| Fidelity Canadian vs. Tech Leaders Income | Fidelity Canadian vs. BetaPro SPTSX 60 | Fidelity Canadian vs. Brompton Global Dividend | Fidelity Canadian vs. Global X Active |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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