Correlation Between Fidelity MSCI and WisdomTree Earnings
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and WisdomTree Earnings 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 Earnings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Consumer and WisdomTree Earnings 500, you can compare the effects of market volatilities on Fidelity MSCI and WisdomTree Earnings 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 Earnings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and WisdomTree Earnings.
Diversification Opportunities for Fidelity MSCI and WisdomTree Earnings
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and WisdomTree is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Consumer and WisdomTree Earnings 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Earnings 500 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 Consumer are associated (or correlated) with WisdomTree Earnings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Earnings 500 has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and WisdomTree Earnings go up and down completely randomly.
Pair Corralation between Fidelity MSCI and WisdomTree Earnings
Given the investment horizon of 90 days Fidelity MSCI Consumer is expected to generate 0.99 times more return on investment than WisdomTree Earnings. However, Fidelity MSCI Consumer is 1.01 times less risky than WisdomTree Earnings. It trades about 0.19 of its potential returns per unit of risk. WisdomTree Earnings 500 is currently generating about 0.06 per unit of risk. 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 |
Fidelity MSCI Consumer vs. WisdomTree Earnings 500
Performance |
| Timeline |
| Fidelity MSCI Consumer |
| WisdomTree Earnings 500 |
Fidelity MSCI and WisdomTree Earnings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and WisdomTree Earnings
The main advantage of trading using opposite Fidelity MSCI and WisdomTree Earnings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, WisdomTree Earnings 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 Earnings will offset losses from the drop in WisdomTree Earnings' long position.| Fidelity MSCI vs. iShares Consumer Staples | Fidelity MSCI vs. Fidelity MSCI Energy | Fidelity MSCI vs. SPDR Portfolio MSCI | Fidelity MSCI vs. iShares MSCI Switzerland |
| 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 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |