Correlation Between Fidelity International and Wilmington International
Can any of the company-specific risk be diversified away by investing in both Fidelity International and Wilmington 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 International and Wilmington International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Index and Wilmington International Fund, you can compare the effects of market volatilities on Fidelity International and Wilmington 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 International with a short position of Wilmington International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Wilmington International.
Diversification Opportunities for Fidelity International and Wilmington International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Wilmington is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Index and Wilmington International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington International 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 Index are associated (or correlated) with Wilmington International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington International has no effect on the direction of Fidelity International i.e., Fidelity International and Wilmington International go up and down completely randomly.
Pair Corralation between Fidelity International and Wilmington International
Assuming the 90 days horizon Fidelity International Index is expected to under-perform the Wilmington International. In addition to that, Fidelity International is 1.09 times more volatile than Wilmington International Fund. It trades about -0.02 of its total potential returns per unit of risk. Wilmington International Fund is currently generating about 0.01 per unit of volatility. If you would invest 902.00 in Wilmington International Fund on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Wilmington International Fund or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity International Index vs. Wilmington International Fund
Performance |
| Timeline |
| Fidelity International |
| Wilmington International |
Fidelity International and Wilmington International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Wilmington International
The main advantage of trading using opposite Fidelity International and Wilmington International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, Wilmington 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 Wilmington International will offset losses from the drop in Wilmington International's long position.| Fidelity International vs. Fidelity Emerging Markets | Fidelity International vs. Fidelity Small Cap | Fidelity International vs. Fidelity Bond Index | Fidelity International vs. Fidelity Mid Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges |