Correlation Between Fidelity Emerging and Clearbridge Dividend
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging and Clearbridge Dividend 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 Emerging and Clearbridge Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Emerging Markets and Clearbridge Dividend Strategy, you can compare the effects of market volatilities on Fidelity Emerging and Clearbridge Dividend 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 Emerging with a short position of Clearbridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Clearbridge Dividend.
Diversification Opportunities for Fidelity Emerging and Clearbridge Dividend
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and CLEARBRIDGE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Markets and Clearbridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Dividend and Fidelity Emerging 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 Emerging Markets are associated (or correlated) with Clearbridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Dividend has no effect on the direction of Fidelity Emerging i.e., Fidelity Emerging and Clearbridge Dividend go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Clearbridge Dividend
Assuming the 90 days horizon Fidelity Emerging Markets is expected to under-perform the Clearbridge Dividend. In addition to that, Fidelity Emerging is 1.43 times more volatile than Clearbridge Dividend Strategy. It trades about -0.19 of its total potential returns per unit of risk. Clearbridge Dividend Strategy is currently generating about -0.12 per unit of volatility. If you would invest 3,186 in Clearbridge Dividend Strategy on August 24, 2025 and sell it today you would lose (55.00) from holding Clearbridge Dividend Strategy or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Emerging Markets vs. Clearbridge Dividend Strategy
Performance |
| Timeline |
| Fidelity Emerging Markets |
| Clearbridge Dividend |
Fidelity Emerging and Clearbridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Clearbridge Dividend
The main advantage of trading using opposite Fidelity Emerging and Clearbridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging position performs unexpectedly, Clearbridge Dividend 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 Clearbridge Dividend will offset losses from the drop in Clearbridge Dividend's long position.| Fidelity Emerging vs. Fidelity Advisor Emerging | Fidelity Emerging vs. Fidelity Advisor Technology | Fidelity Emerging vs. Fidelity Overseas Fund | Fidelity Emerging vs. Fidelity Dividend Growth |
| Clearbridge Dividend vs. T Rowe Price | Clearbridge Dividend vs. T Rowe Price | Clearbridge Dividend vs. Ab Large Cap | Clearbridge Dividend vs. Tiaa Cref Large Cap Value |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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