Correlation Between IShares ESG and Fidelity Asset
Can any of the company-specific risk be diversified away by investing in both IShares ESG and Fidelity Asset 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 IShares ESG and Fidelity Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG Aware and Fidelity Asset Manager, you can compare the effects of market volatilities on IShares ESG and Fidelity Asset 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 IShares ESG with a short position of Fidelity Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Fidelity Asset.
Diversification Opportunities for IShares ESG and Fidelity Asset
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware and Fidelity Asset Manager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Asset Manager and IShares ESG 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 iShares ESG Aware are associated (or correlated) with Fidelity Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Asset Manager has no effect on the direction of IShares ESG i.e., IShares ESG and Fidelity Asset go up and down completely randomly.
Pair Corralation between IShares ESG and Fidelity Asset
Given the investment horizon of 90 days iShares ESG Aware is expected to generate 1.41 times more return on investment than Fidelity Asset. However, IShares ESG is 1.41 times more volatile than Fidelity Asset Manager. It trades about 0.14 of its potential returns per unit of risk. Fidelity Asset Manager is currently generating about 0.11 per unit of risk. If you would invest 4,047 in iShares ESG Aware on September 4, 2025 and sell it today you would earn a total of 362.00 from holding iShares ESG Aware or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares ESG Aware vs. Fidelity Asset Manager
Performance |
| Timeline |
| iShares ESG Aware |
| Fidelity Asset Manager |
IShares ESG and Fidelity Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and Fidelity Asset
The main advantage of trading using opposite IShares ESG and Fidelity Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG position performs unexpectedly, Fidelity Asset 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 Fidelity Asset will offset losses from the drop in Fidelity Asset's long position.| IShares ESG vs. Strategy Shares | IShares ESG vs. Freedom Day Dividend | IShares ESG vs. Franklin Templeton ETF | IShares ESG vs. iShares MSCI China |
| Fidelity Asset vs. Diamond Hill Long Short | Fidelity Asset vs. Easterly Snow Longshort | Fidelity Asset vs. Federated Short Term Income | Fidelity Asset vs. Alpine Ultra Short |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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