Correlation Between Fidelity MSCI and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and WisdomTree International 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 MSCI and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Real and WisdomTree International SmallCap, you can compare the effects of market volatilities on Fidelity MSCI and WisdomTree International 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 MSCI with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and WisdomTree International.
Diversification Opportunities for Fidelity MSCI and WisdomTree International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and WisdomTree is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Real and WisdomTree International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Fidelity MSCI 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 MSCI Real are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and WisdomTree International go up and down completely randomly.
Pair Corralation between Fidelity MSCI and WisdomTree International
Given the investment horizon of 90 days Fidelity MSCI is expected to generate 3.8 times less return on investment than WisdomTree International. In addition to that, Fidelity MSCI is 1.08 times more volatile than WisdomTree International SmallCap. It trades about 0.07 of its total potential returns per unit of risk. WisdomTree International SmallCap is currently generating about 0.27 per unit of volatility. If you would invest 7,635 in WisdomTree International SmallCap on November 4, 2025 and sell it today you would earn a total of 867.00 from holding WisdomTree International SmallCap or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity MSCI Real vs. WisdomTree International Small
Performance |
| Timeline |
| Fidelity MSCI Real |
| WisdomTree International |
Fidelity MSCI and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and WisdomTree International
The main advantage of trading using opposite Fidelity MSCI and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| Fidelity MSCI vs. ProShares SP 500 | Fidelity MSCI vs. FT Cboe Vest | Fidelity MSCI vs. Innovator SP 500 | Fidelity MSCI vs. JPMorgan BetaBuilders MSCI |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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