Correlation Between Fidelity Greater and Fidelity International

Can any of the company-specific risk be diversified away by investing in both Fidelity Greater and Fidelity International 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 Greater and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidelity Greater Canada and Fidelity International Value, you can compare the effects of market volatilities on Fidelity Greater and Fidelity International 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 Greater with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Greater and Fidelity International.

Diversification Opportunities for Fidelity Greater and Fidelity International

0.93

Correlation Coefficient

Fidelity Greater  Fidelity International

Almost no diversification

The 3 months correlation between Fidelity and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Greater Canada and Fidelity International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and Fidelity Greater 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 Greater Canada are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Fidelity Greater i.e., Fidelity Greater and Fidelity International go up and down completely randomly.

Pair Corralation between Fidelity Greater and Fidelity International

Assuming the 90 days trading horizon Fidelity Greater Canada is expected to generate 0.81 times more return on investment than Fidelity International. However, Fidelity Greater Canada is 1.24 times less risky than Fidelity International. It trades about 0.36 of its potential returns per unit of risk. Fidelity International Value is currently generating about 0.2 per unit of risk. If you would invest  1,235  in Fidelity Greater Canada on April 14, 2025 and sell it today you would earn a total of  51.00  from holding Fidelity Greater Canada or generate 4.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.24%
Values	Daily Returns

Fidelity Greater Canada  vs.  Fidelity International Value

Fidelity Greater Canada

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Greater Canada are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Fidelity Greater exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fidelity International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity International Value are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fidelity International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fidelity Greater and Fidelity International

The main advantage of trading using opposite Fidelity Greater and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Greater position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.

The idea behind Fidelity Greater Canada and Fidelity International Value 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.