Correlation Between WisdomTree High and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both WisdomTree High and Fidelity MSCI 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 High and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree High Dividend and Fidelity MSCI Consumer, you can compare the effects of market volatilities on WisdomTree High and Fidelity MSCI 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 High with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree High and Fidelity MSCI.
Diversification Opportunities for WisdomTree High and Fidelity MSCI
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and Fidelity is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree High Dividend and Fidelity MSCI Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Consumer and WisdomTree High 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 High Dividend are associated (or correlated) with Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Consumer has no effect on the direction of WisdomTree High i.e., WisdomTree High and Fidelity MSCI go up and down completely randomly.
Pair Corralation between WisdomTree High and Fidelity MSCI
Considering the 90-day investment horizon WisdomTree High Dividend is expected to generate 0.9 times more return on investment than Fidelity MSCI. However, WisdomTree High Dividend is 1.11 times less risky than Fidelity MSCI. It trades about 0.05 of its potential returns per unit of risk. Fidelity MSCI Consumer is currently generating about 0.0 per unit of risk. If you would invest 9,992 in WisdomTree High Dividend on October 3, 2025 and sell it today you would earn a total of 190.00 from holding WisdomTree High Dividend or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree High Dividend vs. Fidelity MSCI Consumer
Performance |
| Timeline |
| WisdomTree High Dividend |
| Fidelity MSCI Consumer |
WisdomTree High and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree High and Fidelity MSCI
The main advantage of trading using opposite WisdomTree High and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree High position performs unexpectedly, Fidelity MSCI 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 MSCI will offset losses from the drop in Fidelity MSCI's long position.| WisdomTree High vs. WisdomTree Earnings 500 | WisdomTree High vs. Pacer Developed Markets | WisdomTree High vs. iShares Consumer Staples | WisdomTree High vs. iShares MSCI Switzerland |
| Fidelity MSCI vs. First Trust Nasdaq | Fidelity MSCI vs. First Trust Bloomberg | Fidelity MSCI vs. Cambria Cannabis ETF | Fidelity MSCI vs. DoubleLine ETF Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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