Correlation Between WisdomTree Earnings and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both WisdomTree Earnings 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 Earnings 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 Earnings 500 and Fidelity MSCI Consumer, you can compare the effects of market volatilities on WisdomTree Earnings 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 Earnings with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Earnings and Fidelity MSCI.
Diversification Opportunities for WisdomTree Earnings and Fidelity MSCI
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and Fidelity is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Earnings 500 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 Earnings 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 Earnings 500 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 Earnings i.e., WisdomTree Earnings and Fidelity MSCI go up and down completely randomly.
Pair Corralation between WisdomTree Earnings and Fidelity MSCI
Considering the 90-day investment horizon WisdomTree Earnings is expected to generate 3.18 times less return on investment than Fidelity MSCI. In addition to that, WisdomTree Earnings is 1.01 times more volatile than Fidelity MSCI Consumer. It trades about 0.06 of its total potential returns per unit of risk. Fidelity MSCI Consumer is currently generating about 0.19 per unit of volatility. If you would invest 4,862 in Fidelity MSCI Consumer on October 29, 2025 and sell it today you would earn a total of 394.00 from holding Fidelity MSCI Consumer or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
WisdomTree Earnings 500 vs. Fidelity MSCI Consumer
Performance |
| Timeline |
| WisdomTree Earnings 500 |
| Fidelity MSCI Consumer |
WisdomTree Earnings and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Earnings and Fidelity MSCI
The main advantage of trading using opposite WisdomTree Earnings and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Earnings 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 Earnings vs. WisdomTree High Dividend | WisdomTree Earnings vs. iShares Consumer Staples | WisdomTree Earnings vs. iShares MSCI Switzerland | WisdomTree Earnings vs. Direxion NASDAQ 100 Equal |
| Fidelity MSCI vs. iShares Consumer Staples | Fidelity MSCI vs. Fidelity MSCI Energy | Fidelity MSCI vs. SPDR Portfolio MSCI | Fidelity MSCI vs. iShares MSCI Switzerland |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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