Correlation Between Fidelity Crypto and Global X

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

Diversification Opportunities for Fidelity Crypto and Global X

1.0

Correlation Coefficient

Fidelity Crypto  Global X

No risk reduction

The 3 months correlation between Fidelity and Global is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Crypto Industry and Global X Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Blockchain and Fidelity Crypto 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 Crypto Industry 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 Blockchain has no effect on the direction of Fidelity Crypto i.e., Fidelity Crypto and Global X go up and down completely randomly.

Pair Corralation between Fidelity Crypto and Global X

Given the investment horizon of 90 days Fidelity Crypto is expected to generate 1.29 times less return on investment than Global X. But when comparing it to its historical volatility, Fidelity Crypto Industry is 1.22 times less risky than Global X. It trades about 0.05 of its potential returns per unit of risk. Global X Blockchain is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,985  in Global X Blockchain on January 31, 2025 and sell it today you would earn a total of  1,805  from holding Global X Blockchain or generate 90.93% return on investment over 90 days.

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

Fidelity Crypto Industry  vs.  Global X Blockchain

Fidelity Crypto Industry

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Crypto Industry has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's forward indicators remain nearly stable which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Global X Blockchain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's fundamental indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Pair Trading with Fidelity Crypto and Global X

The main advantage of trading using opposite Fidelity Crypto and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Crypto 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 Crypto Industry and Global X Blockchain 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.