Correlation Between Fidelity MSCI and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and IShares ESG 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 IShares ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Utilities and iShares ESG Aware, you can compare the effects of market volatilities on Fidelity MSCI and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and IShares ESG.
Diversification Opportunities for Fidelity MSCI and IShares ESG
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and IShares is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Utilities and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 Utilities are associated (or correlated) with IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and IShares ESG go up and down completely randomly.
Pair Corralation between Fidelity MSCI and IShares ESG
Given the investment horizon of 90 days Fidelity MSCI Utilities is expected to generate 0.68 times more return on investment than IShares ESG. However, Fidelity MSCI Utilities is 1.46 times less risky than IShares ESG. It trades about 0.11 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.03 per unit of risk. If you would invest 5,463 in Fidelity MSCI Utilities on August 26, 2025 and sell it today you would earn a total of 297.00 from holding Fidelity MSCI Utilities or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity MSCI Utilities vs. iShares ESG Aware
Performance |
| Timeline |
| Fidelity MSCI Utilities |
| iShares ESG Aware |
Fidelity MSCI and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and IShares ESG
The main advantage of trading using opposite Fidelity MSCI and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| Fidelity MSCI vs. Ultimus Managers Trust | Fidelity MSCI vs. American Beacon Select | Fidelity MSCI vs. Direxion Daily SP | Fidelity MSCI vs. EA Series Trust |
| IShares ESG vs. FT Vest Equity | IShares ESG vs. Northern Lights | IShares ESG vs. Diamond Hill Funds | IShares ESG vs. Dimensional International High |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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