Correlation Between Fidelity International and WisdomTree
Can any of the company-specific risk be diversified away by investing in both Fidelity International and WisdomTree 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 International and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Small and WisdomTree 1 3 Year, you can compare the effects of market volatilities on Fidelity International and WisdomTree 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 International with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and WisdomTree.
Diversification Opportunities for Fidelity International and WisdomTree
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Small and WisdomTree 1 3 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree 1 3 and Fidelity 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 Fidelity International Small are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree 1 3 has no effect on the direction of Fidelity International i.e., Fidelity International and WisdomTree go up and down completely randomly.
Pair Corralation between Fidelity International and WisdomTree
Assuming the 90 days horizon Fidelity International Small is expected to generate 9.48 times more return on investment than WisdomTree. However, Fidelity International is 9.48 times more volatile than WisdomTree 1 3 Year. It trades about 0.3 of its potential returns per unit of risk. WisdomTree 1 3 Year is currently generating about 0.32 per unit of risk. If you would invest 3,404 in Fidelity International Small on November 30, 2025 and sell it today you would earn a total of 348.00 from holding Fidelity International Small or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Fidelity International Small vs. WisdomTree 1 3 Year
Performance |
| Timeline |
| Fidelity International |
| WisdomTree 1 3 |
Fidelity International and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and WisdomTree
The main advantage of trading using opposite Fidelity International and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, WisdomTree 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 WisdomTree will offset losses from the drop in WisdomTree's long position.| Fidelity International vs. Fidelity Mega Cap | Fidelity International vs. Fidelity Large Cap | Fidelity International vs. Fidelity Growth Discovery | Fidelity International vs. Fidelity Stock Selector |
| WisdomTree vs. Janus Henderson Mortgage Backed | WisdomTree vs. Fidelity International Small | WisdomTree vs. Fidelity International Small | WisdomTree vs. Dimensional 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |