Correlation Between Fidelity MSCI and Global X
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and Global X 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 MSCI and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Communication and Global X Social, you can compare the effects of market volatilities on Fidelity MSCI and Global X 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 MSCI with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and Global X.
Diversification Opportunities for Fidelity MSCI and Global X
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Global is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Communication and Global X Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Social and Fidelity MSCI 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 MSCI Communication are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Social has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and Global X go up and down completely randomly.
Pair Corralation between Fidelity MSCI and Global X
Given the investment horizon of 90 days Fidelity MSCI is expected to generate 1.28 times less return on investment than Global X. But when comparing it to its historical volatility, Fidelity MSCI Communication is 1.3 times less risky than Global X. It trades about 0.22 of its potential returns per unit of risk. Global X Social is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,922 in Global X Social on June 6, 2025 and sell it today you would earn a total of 816.00 from holding Global X Social or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity MSCI Communication vs. Global X Social
Performance |
| Timeline |
| Fidelity MSCI Commun |
| Global X Social |
Fidelity MSCI and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and Global X
The main advantage of trading using opposite Fidelity MSCI and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Fidelity MSCI vs. Fidelity MSCI Materials | Fidelity MSCI vs. Fidelity MSCI Industrials | Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Consumer |
| Global X vs. Ready Capital | Global X vs. Invesco SP 500 | Global X vs. Invesco SP 500 | Global X vs. Thrivent High Yield |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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