Correlation Between Global X and Fidelity High
Can any of the company-specific risk be diversified away by investing in both Global X and Fidelity High 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 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SP and Fidelity High Quality, you can compare the effects of market volatilities on Global X and Fidelity High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Fidelity High.
Diversification Opportunities for Global X and Fidelity High
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Global X SP and Fidelity High Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity High Quality 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 SP are associated (or correlated) with Fidelity High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity High Quality has no effect on the direction of Global X i.e., Global X and Fidelity High go up and down completely randomly.
Pair Corralation between Global X and Fidelity High
Assuming the 90 days trading horizon Global X SP is expected to generate 0.95 times more return on investment than Fidelity High. However, Global X SP is 1.05 times less risky than Fidelity High. It trades about 0.16 of its potential returns per unit of risk. Fidelity High Quality is currently generating about 0.12 per unit of risk. If you would invest 6,097 in Global X SP on August 29, 2024 and sell it today you would earn a total of 2,577 from holding Global X SP or generate 42.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X SP vs. Fidelity High Quality
Performance |
| Timeline |
| Global X SP |
| Fidelity High Quality |
Global X and Fidelity High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Fidelity High
The main advantage of trading using opposite Global X and Fidelity High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Fidelity High 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 High will offset losses from the drop in Fidelity High's long position.| Global X vs. Global X SPTSX | Global X vs. Vanguard FTSE Developed | Global X vs. Global X Active | Global X vs. iShares SPTSX Capped |
| Fidelity High vs. Fidelity High Quality | Fidelity High vs. Fidelity International High | Fidelity High vs. Fidelity High Dividend | Fidelity High vs. Fidelity Canadian High |
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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