Correlation Between WisdomTree Europe and Fidelity International
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and Fidelity International 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 WisdomTree Europe and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Europe SmallCap and Fidelity International Multifactor, you can compare the effects of market volatilities on WisdomTree Europe and Fidelity International 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 WisdomTree Europe with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and Fidelity International.
Diversification Opportunities for WisdomTree Europe and Fidelity International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Fidelity is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and Fidelity International Multifa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and WisdomTree Europe 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 WisdomTree Europe SmallCap are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and Fidelity International go up and down completely randomly.
Pair Corralation between WisdomTree Europe and Fidelity International
Considering the 90-day investment horizon WisdomTree Europe SmallCap is expected to generate 1.1 times more return on investment than Fidelity International. However, WisdomTree Europe is 1.1 times more volatile than Fidelity International Multifactor. It trades about 0.35 of its potential returns per unit of risk. Fidelity International Multifactor is currently generating about 0.26 per unit of risk. If you would invest 6,716 in WisdomTree Europe SmallCap on October 15, 2025 and sell it today you would earn a total of 593.00 from holding WisdomTree Europe SmallCap or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. Fidelity International Multifa
Performance |
| Timeline |
| WisdomTree Europe |
| Fidelity International |
WisdomTree Europe and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and Fidelity International
The main advantage of trading using opposite WisdomTree Europe and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| WisdomTree Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares MSCI Japan |
| Fidelity International vs. Fidelity Emerging Markets | Fidelity International vs. Fidelity International High | Fidelity International vs. SPDR SSGA Small | Fidelity International vs. iShares Currency Hedged |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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