Correlation Between WisdomTree Japan and Fidelity Value
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and Fidelity Value 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 Japan and Fidelity Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Japan Hedged and Fidelity Value Factor, you can compare the effects of market volatilities on WisdomTree Japan and Fidelity Value 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 Japan with a short position of Fidelity Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and Fidelity Value.
Diversification Opportunities for WisdomTree Japan and Fidelity Value
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and Fidelity is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and Fidelity Value Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Value Factor and WisdomTree Japan 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 Japan Hedged are associated (or correlated) with Fidelity Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Value Factor has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and Fidelity Value go up and down completely randomly.
Pair Corralation between WisdomTree Japan and Fidelity Value
Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 1.53 times more return on investment than Fidelity Value. However, WisdomTree Japan is 1.53 times more volatile than Fidelity Value Factor. It trades about 0.33 of its potential returns per unit of risk. Fidelity Value Factor is currently generating about 0.11 per unit of risk. If you would invest 13,906 in WisdomTree Japan Hedged on November 29, 2025 and sell it today you would earn a total of 3,108 from holding WisdomTree Japan Hedged or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. Fidelity Value Factor
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| Fidelity Value Factor |
WisdomTree Japan and Fidelity Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and Fidelity Value
The main advantage of trading using opposite WisdomTree Japan and Fidelity Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, Fidelity Value 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 Value will offset losses from the drop in Fidelity Value's long position.| WisdomTree Japan vs. Pacer Small Cap | WisdomTree Japan vs. WisdomTree MidCap Dividend | WisdomTree Japan vs. iShares Financials ETF | WisdomTree Japan vs. SPDR SP 600 |
| Fidelity Value vs. Fidelity Quality Factor | Fidelity Value vs. SPDR SSGA Large | Fidelity Value vs. First Trust NASDAQ 100 | Fidelity Value vs. Capital Group Global |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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