Correlation Between WisdomTree International and Fidelity Stocks
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and Fidelity Stocks 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 International and Fidelity Stocks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Equity and Fidelity Stocks for, you can compare the effects of market volatilities on WisdomTree International and Fidelity Stocks 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 International with a short position of Fidelity Stocks. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Fidelity Stocks.
Diversification Opportunities for WisdomTree International and Fidelity Stocks
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Fidelity is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and Fidelity Stocks for in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Stocks for and WisdomTree 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 WisdomTree International Equity are associated (or correlated) with Fidelity Stocks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Stocks for has no effect on the direction of WisdomTree International i.e., WisdomTree International and Fidelity Stocks go up and down completely randomly.
Pair Corralation between WisdomTree International and Fidelity Stocks
Considering the 90-day investment horizon WisdomTree International Equity is expected to generate 1.1 times more return on investment than Fidelity Stocks. However, WisdomTree International is 1.1 times more volatile than Fidelity Stocks for. It trades about 0.17 of its potential returns per unit of risk. Fidelity Stocks for is currently generating about 0.06 per unit of risk. If you would invest 6,717 in WisdomTree International Equity on December 5, 2025 and sell it today you would earn a total of 571.00 from holding WisdomTree International Equity or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Equit vs. Fidelity Stocks for
Performance |
| Timeline |
| WisdomTree International |
| Fidelity Stocks for |
WisdomTree International and Fidelity Stocks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and Fidelity Stocks
The main advantage of trading using opposite WisdomTree International and Fidelity Stocks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, Fidelity Stocks 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 Stocks will offset losses from the drop in Fidelity Stocks' long position.The idea behind WisdomTree International Equity and Fidelity Stocks for 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.
| Fidelity Stocks vs. Fidelity Emerging Markets | Fidelity Stocks vs. Fidelity Covington Trust | Fidelity Stocks vs. BlackRock World ex | Fidelity Stocks vs. Oppenheimer Russell 2000 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |