Correlation Between Blackrock International and Fidelity Zero

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

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

Diversification Opportunities for Blackrock International and Fidelity Zero

0.45

Correlation Coefficient

Blackrock International  Fidelity Zero

Very weak diversification

The 3 months correlation between Blackrock and Fidelity is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock International Index and Fidelity Zero Extended in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Zero Extended and Blackrock International 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 Blackrock International Index are associated (or correlated) with Fidelity Zero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Zero Extended has no effect on the direction of Blackrock International i.e., Blackrock International and Fidelity Zero go up and down completely randomly.

Pair Corralation between Blackrock International and Fidelity Zero

Assuming the 90 days horizon Blackrock International is expected to generate 2.52 times less return on investment than Fidelity Zero. But when comparing it to its historical volatility, Blackrock International Index is 1.32 times less risky than Fidelity Zero. It trades about 0.09 of its potential returns per unit of risk. Fidelity Zero Extended is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,268  in Fidelity Zero Extended on May 3, 2025 and sell it today you would earn a total of  144.00  from holding Fidelity Zero Extended or generate 11.36% return on investment over 90 days.

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

Blackrock International Index  vs.  Fidelity Zero Extended

Blackrock International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock International Index are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Blackrock International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Zero Extended

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Zero Extended are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Zero may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Blackrock International and Fidelity Zero

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

The idea behind Blackrock International Index and Fidelity Zero Extended 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.