Correlation Between Fidelity Small and Global X
Can any of the company-specific risk be diversified away by investing in both Fidelity Small 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 Small 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 Small Cap and Global X Defense, you can compare the effects of market volatilities on Fidelity Small 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 Small with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Global X.
Diversification Opportunities for Fidelity Small and Global X
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Global is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Global X Defense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Defense and Fidelity Small 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 Small Cap 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 Defense has no effect on the direction of Fidelity Small i.e., Fidelity Small and Global X go up and down completely randomly.
Pair Corralation between Fidelity Small and Global X
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 0.82 times more return on investment than Global X. However, Fidelity Small Cap is 1.22 times less risky than Global X. It trades about -0.02 of its potential returns per unit of risk. Global X Defense is currently generating about -0.07 per unit of risk. If you would invest 2,050 in Fidelity Small Cap on October 5, 2025 and sell it today you would lose (32.00) from holding Fidelity Small Cap or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Global X Defense
Performance |
| Timeline |
| Fidelity Small Cap |
| Global X Defense |
Fidelity Small and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Global X
The main advantage of trading using opposite Fidelity Small and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small 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 Small vs. Fidelity Blue Chip | Fidelity Small vs. Fidelity Covington Trust | Fidelity Small vs. Putnam Focused Large | Fidelity Small vs. Goldman Sachs ActiveBeta |
| Global X vs. Global X Uranium | Global X vs. iShares MSCI KLD | Global X vs. Schwab International Small Cap | Global X vs. ProShares UltraPro SP500 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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