Correlation Between Fidelity Sai and Global X

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

Diversification Opportunities for Fidelity Sai and Global X

-0.45

Correlation Coefficient

Fidelity Sai  Global X

Very good diversification

The 3 months correlation between Fidelity and Global is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai International and Global X Hydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Hydrogen and Fidelity Sai 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 Sai International 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 Hydrogen has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Global X go up and down completely randomly.

Pair Corralation between Fidelity Sai and Global X

Assuming the 90 days horizon Fidelity Sai International is expected to generate 0.26 times more return on investment than Global X. However, Fidelity Sai International is 3.85 times less risky than Global X. It trades about 0.12 of its potential returns per unit of risk. Global X Hydrogen is currently generating about -0.15 per unit of risk. If you would invest  813.00  in Fidelity Sai International on December 2, 2024 and sell it today you would earn a total of  29.00  from holding Fidelity Sai International or generate 3.57% return on investment over 90 days.

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

Fidelity Sai International  vs.  Global X Hydrogen

Fidelity Sai Interna

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai International are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Sai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Global X Hydrogen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Hydrogen has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with Fidelity Sai and Global X

The main advantage of trading using opposite Fidelity Sai and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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 Sai International and Global X Hydrogen 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.