Correlation Between Fidelity Overseas and Fidelity Dividend
Can any of the company-specific risk be diversified away by investing in both Fidelity Overseas and Fidelity 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 Overseas and Fidelity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Overseas Fund and Fidelity Dividend Growth, you can compare the effects of market volatilities on Fidelity Overseas and Fidelity 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 Overseas with a short position of Fidelity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Overseas and Fidelity Dividend.
Diversification Opportunities for Fidelity Overseas and Fidelity Dividend
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Overseas Fund and Fidelity Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Dividend Growth and Fidelity Overseas 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 Overseas Fund are associated (or correlated) with Fidelity Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Dividend Growth has no effect on the direction of Fidelity Overseas i.e., Fidelity Overseas and Fidelity Dividend go up and down completely randomly.
Pair Corralation between Fidelity Overseas and Fidelity Dividend
Assuming the 90 days horizon Fidelity Overseas is expected to generate 1.99 times less return on investment than Fidelity Dividend. But when comparing it to its historical volatility, Fidelity Overseas Fund is 1.06 times less risky than Fidelity Dividend. It trades about 0.06 of its potential returns per unit of risk. Fidelity Dividend Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,035 in Fidelity Dividend Growth on August 29, 2025 and sell it today you would earn a total of 245.00 from holding Fidelity Dividend Growth or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Overseas Fund vs. Fidelity Dividend Growth
Performance |
| Timeline |
| Fidelity Overseas |
| Fidelity Dividend Growth |
Fidelity Overseas and Fidelity Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Overseas and Fidelity Dividend
The main advantage of trading using opposite Fidelity Overseas and Fidelity Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Overseas position performs unexpectedly, Fidelity 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 Fidelity Dividend will offset losses from the drop in Fidelity Dividend's long position.| Fidelity Overseas vs. Invesco Gold Special | Fidelity Overseas vs. Gold And Precious | Fidelity Overseas vs. Gamco Global Gold | Fidelity Overseas vs. Oppenheimer Gold Special |
| Fidelity Dividend vs. Global Real Estate | Fidelity Dividend vs. Pender Real Estate | Fidelity Dividend vs. Nuveen Real Estate | Fidelity Dividend vs. Redwood Real Estate |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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