Correlation Between Global X and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Global X and Fidelity International 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 Global X and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Natural and Fidelity International High, you can compare the effects of market volatilities on Global X and Fidelity International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Fidelity International.
Diversification Opportunities for Global X and Fidelity International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Fidelity is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Global X Natural and Fidelity International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Natural are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Global X i.e., Global X and Fidelity International go up and down completely randomly.
Pair Corralation between Global X and Fidelity International
Assuming the 90 days trading horizon Global X Natural is expected to under-perform the Fidelity International. In addition to that, Global X is 2.13 times more volatile than Fidelity International High. It trades about -0.03 of its total potential returns per unit of risk. Fidelity International High is currently generating about 0.23 per unit of volatility. If you would invest 2,657 in Fidelity International High on November 3, 2024 and sell it today you would earn a total of 122.00 from holding Fidelity International High or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Natural vs. Fidelity International High
Performance |
| Timeline |
| Global X Natural |
| Fidelity International |
Global X and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Fidelity International
The main advantage of trading using opposite Global X and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| Global X vs. Global X Crude | Global X vs. Global X Silver | Global X vs. Global X Gold | Global X vs. Global X Active |
| Fidelity International vs. Fidelity Canadian High | Fidelity International vs. Fidelity High Dividend | Fidelity International vs. Fidelity High Dividend | Fidelity International vs. Fidelity Dividend for |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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