Correlation Between Fidelity All and GLOBAL X

Can any of the company-specific risk be diversified away by investing in both Fidelity All 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 All 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 All in One Balanced and GLOBAL X HIGH, you can compare the effects of market volatilities on Fidelity All 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 All with a short position of GLOBAL X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity All and GLOBAL X.

Diversification Opportunities for Fidelity All and GLOBAL X

0.9

Correlation Coefficient

Fidelity All  GLOBAL X

Almost no diversification

The 3 months correlation between Fidelity and GLOBAL is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity All in One Balanced and GLOBAL X HIGH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL X HIGH and Fidelity All 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 All in One Balanced 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 HIGH has no effect on the direction of Fidelity All i.e., Fidelity All and GLOBAL X go up and down completely randomly.

Pair Corralation between Fidelity All and GLOBAL X

Assuming the 90 days trading horizon Fidelity All in One Balanced is expected to generate 27.01 times more return on investment than GLOBAL X. However, Fidelity All is 27.01 times more volatile than GLOBAL X HIGH. It trades about 0.26 of its potential returns per unit of risk. GLOBAL X HIGH is currently generating about 0.67 per unit of risk. If you would invest  1,274  in Fidelity All in One Balanced on April 22, 2025 and sell it today you would earn a total of  87.00  from holding Fidelity All in One Balanced or generate 6.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Fidelity All in One Balanced  vs.  GLOBAL X HIGH

Fidelity All in

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity All in One Balanced are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Fidelity All may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GLOBAL X HIGH

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in GLOBAL X HIGH are ranked lower than 52 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, GLOBAL X is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fidelity All and GLOBAL X

The main advantage of trading using opposite Fidelity All and GLOBAL X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity All 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.

The idea behind Fidelity All in One Balanced and GLOBAL X HIGH 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..