Correlation Between Fidelity International and Hotchkis Wiley
Can any of the company-specific risk be diversified away by investing in both Fidelity International and Hotchkis Wiley 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 Hotchkis Wiley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Discovery and Hotchkis Wiley Diversified, you can compare the effects of market volatilities on Fidelity International and Hotchkis Wiley 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 Hotchkis Wiley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Hotchkis Wiley.
Diversification Opportunities for Fidelity International and Hotchkis Wiley
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Hotchkis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Discove and Hotchkis Wiley Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotchkis Wiley Diver 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 Discovery are associated (or correlated) with Hotchkis Wiley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotchkis Wiley Diver has no effect on the direction of Fidelity International i.e., Fidelity International and Hotchkis Wiley go up and down completely randomly.
Pair Corralation between Fidelity International and Hotchkis Wiley
Assuming the 90 days horizon Fidelity International is expected to generate 1.82 times less return on investment than Hotchkis Wiley. In addition to that, Fidelity International is 1.12 times more volatile than Hotchkis Wiley Diversified. It trades about 0.03 of its total potential returns per unit of risk. Hotchkis Wiley Diversified is currently generating about 0.06 per unit of volatility. If you would invest 3,076 in Hotchkis Wiley Diversified on August 18, 2025 and sell it today you would earn a total of 92.00 from holding Hotchkis Wiley Diversified or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity International Discove vs. Hotchkis Wiley Diversified
Performance |
| Timeline |
| Fidelity International |
| Hotchkis Wiley Diver |
Fidelity International and Hotchkis Wiley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Hotchkis Wiley
The main advantage of trading using opposite Fidelity International and Hotchkis Wiley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, Hotchkis Wiley 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 Hotchkis Wiley will offset losses from the drop in Hotchkis Wiley's long position.| Fidelity International vs. Vanguard Gnma Fund | Fidelity International vs. Fidelity Advisor Technology | Fidelity International vs. Fidelity Asset Manager | Fidelity International vs. Fidelity Advisor Equity |
| Hotchkis Wiley vs. Hw Opportunities Mp | Hotchkis Wiley vs. Hotchkis Wiley Value | Hotchkis Wiley vs. Hotchkis Wiley Value | Hotchkis Wiley vs. Hotchkis Wiley 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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