Correlation Between Fidelity Global and TD One

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

By analyzing existing cross correlation between Fidelity Global Monthly and TD One Click Moderate, you can compare the effects of market volatilities on Fidelity Global and TD One 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 Global with a short position of TD One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Global and TD One.

Diversification Opportunities for Fidelity Global and TD One

0.88

Correlation Coefficient

Fidelity Global  TD One

Very poor diversification

The 3 months correlation between Fidelity and TOCM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Global Monthly and TD One Click Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD One Click and Fidelity Global 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 Global Monthly are associated (or correlated) with TD One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD One Click has no effect on the direction of Fidelity Global i.e., Fidelity Global and TD One go up and down completely randomly.

Pair Corralation between Fidelity Global and TD One

Assuming the 90 days trading horizon Fidelity Global Monthly is expected to generate 0.81 times more return on investment than TD One. However, Fidelity Global Monthly is 1.24 times less risky than TD One. It trades about 0.11 of its potential returns per unit of risk. TD One Click Moderate is currently generating about 0.04 per unit of risk. If you would invest  1,491  in Fidelity Global Monthly on September 21, 2025 and sell it today you would earn a total of  38.00  from holding Fidelity Global Monthly or generate 2.55% return on investment over 90 days.

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

Fidelity Global Monthly  vs.  TD One Click Moderate

Fidelity Global Monthly

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Global Monthly are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Fidelity Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

TD One Click

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in TD One Click Moderate are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, TD One is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fidelity Global and TD One

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

The idea behind Fidelity Global Monthly and TD One Click Moderate 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.