Correlation Between 3iQ Bitcoin and Fidelity Global

Can any of the company-specific risk be diversified away by investing in both 3iQ Bitcoin and Fidelity Global 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 3iQ Bitcoin and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3iQ Bitcoin ETF and Fidelity Global Value, you can compare the effects of market volatilities on 3iQ Bitcoin and Fidelity Global 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 3iQ Bitcoin with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ Bitcoin and Fidelity Global.

Diversification Opportunities for 3iQ Bitcoin and Fidelity Global

-0.87

Correlation Coefficient

3iQ Bitcoin  Fidelity Global

Pay attention - limited upside

The 3 months correlation between 3iQ and Fidelity is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ Bitcoin ETF and Fidelity Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Value and 3iQ Bitcoin 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 3iQ Bitcoin ETF are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Value has no effect on the direction of 3iQ Bitcoin i.e., 3iQ Bitcoin and Fidelity Global go up and down completely randomly.

Pair Corralation between 3iQ Bitcoin and Fidelity Global

Assuming the 90 days trading horizon 3iQ Bitcoin ETF is expected to under-perform the Fidelity Global. In addition to that, 3iQ Bitcoin is 1.83 times more volatile than Fidelity Global Value. It trades about -0.05 of its total potential returns per unit of risk. Fidelity Global Value is currently generating about 0.18 per unit of volatility. If you would invest  773.00  in Fidelity Global Value on December 30, 2024 and sell it today you would earn a total of  142.00  from holding Fidelity Global Value or generate 18.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

3iQ Bitcoin ETF  vs.  Fidelity Global Value

3iQ Bitcoin ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days 3iQ Bitcoin ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Fidelity Global Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Global Value are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Fidelity Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 3iQ Bitcoin and Fidelity Global

The main advantage of trading using opposite 3iQ Bitcoin and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ Bitcoin position performs unexpectedly, Fidelity Global 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 Global will offset losses from the drop in Fidelity Global's long position.

The idea behind 3iQ Bitcoin ETF and Fidelity Global 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.