Correlation Between Xtrackers Harvest and Fidelity Covington

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Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and Fidelity Covington 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 Xtrackers Harvest and Fidelity Covington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and Fidelity Covington Trust, you can compare the effects of market volatilities on Xtrackers Harvest and Fidelity Covington 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 Xtrackers Harvest with a short position of Fidelity Covington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and Fidelity Covington.

Diversification Opportunities for Xtrackers Harvest and Fidelity Covington

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Xtrackers Harvest and Fidelity Covington

If you would invest  3,174  in Xtrackers Harvest CSI on September 6, 2025 and sell it today you would earn a total of  127.00  from holding Xtrackers Harvest CSI or generate 4.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Xtrackers Harvest CSI  vs.  Fidelity Covington Trust

 Performance 
       Timeline  
Xtrackers Harvest CSI 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Xtrackers Harvest CSI are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical indicators, Xtrackers Harvest is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Fidelity Covington Trust 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Over the last 90 days Fidelity Covington Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Fidelity Covington is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Xtrackers Harvest and Fidelity Covington Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xtrackers Harvest and Fidelity Covington

The main advantage of trading using opposite Xtrackers Harvest and Fidelity Covington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, Fidelity Covington 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 Covington will offset losses from the drop in Fidelity Covington's long position.
The idea behind Xtrackers Harvest CSI and Fidelity Covington Trust 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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