Correlation Between Fidelity High and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Fidelity High and IShares 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 Fidelity High and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity High Dividend and iShares MSCI EAFE, you can compare the effects of market volatilities on Fidelity High and IShares 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 Fidelity High with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity High and IShares MSCI.
Diversification Opportunities for Fidelity High and IShares MSCI
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and IShares is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity High Dividend and iShares MSCI EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI EAFE and Fidelity 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 Fidelity High Dividend are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI EAFE has no effect on the direction of Fidelity High i.e., Fidelity High and IShares MSCI go up and down completely randomly.
Pair Corralation between Fidelity High and IShares MSCI
Assuming the 90 days trading horizon Fidelity High Dividend is expected to generate 0.79 times more return on investment than IShares MSCI. However, Fidelity High Dividend is 1.27 times less risky than IShares MSCI. It trades about 0.18 of its potential returns per unit of risk. iShares MSCI EAFE is currently generating about 0.07 per unit of risk. If you would invest 3,648 in Fidelity High Dividend on September 12, 2024 and sell it today you would earn a total of 201.00 from holding Fidelity High Dividend or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity High Dividend vs. iShares MSCI EAFE
Performance |
| Timeline |
| Fidelity High Dividend |
| iShares MSCI EAFE |
Fidelity High and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity High and IShares MSCI
The main advantage of trading using opposite Fidelity High and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity High position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Fidelity High vs. Fidelity Canadian High | Fidelity High vs. Fidelity International High | Fidelity High vs. Fidelity High Dividend | Fidelity High vs. Fidelity Dividend for |
| IShares MSCI vs. iShares SPTSX Completion | IShares MSCI vs. iShares Canadian Universe | IShares MSCI vs. iShares Core SP | IShares MSCI vs. iShares SPTSX Capped |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |