Correlation Between Fidelity MSCI and Invesco DWA
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and Invesco DWA 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 Invesco DWA 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 Invesco DWA Utilities, you can compare the effects of market volatilities on Fidelity MSCI and Invesco DWA 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 Invesco DWA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and Invesco DWA.
Diversification Opportunities for Fidelity MSCI and Invesco DWA
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Invesco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Utilities and Invesco DWA Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DWA Utilities 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 Invesco DWA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco DWA Utilities has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and Invesco DWA go up and down completely randomly.
Pair Corralation between Fidelity MSCI and Invesco DWA
Given the investment horizon of 90 days Fidelity MSCI Utilities is expected to generate 0.84 times more return on investment than Invesco DWA. However, Fidelity MSCI Utilities is 1.19 times less risky than Invesco DWA. It trades about -0.12 of its potential returns per unit of risk. Invesco DWA Utilities is currently generating about -0.13 per unit of risk. If you would invest 5,793 in Fidelity MSCI Utilities on October 10, 2025 and sell it today you would lose (358.00) from holding Fidelity MSCI Utilities or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity MSCI Utilities vs. Invesco DWA Utilities
Performance |
| Timeline |
| Fidelity MSCI Utilities |
| Invesco DWA Utilities |
Fidelity MSCI and Invesco DWA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and Invesco DWA
The main advantage of trading using opposite Fidelity MSCI and Invesco DWA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, Invesco DWA 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 Invesco DWA will offset losses from the drop in Invesco DWA's long position.| Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Communication | Fidelity MSCI vs. Fidelity MSCI Financials | Fidelity MSCI vs. iShares ESG Aware |
| Invesco DWA vs. Invesco DWA Consumer | Invesco DWA vs. Invesco DWA Basic | Invesco DWA vs. Fidelity Disruptive Finance | Invesco DWA vs. FundX Investment Trust |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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