Correlation Between International Business and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both International Business and Fidelity MSCI 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 International Business and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Fidelity MSCI Consumer, you can compare the effects of market volatilities on International Business and Fidelity MSCI 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 International Business with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Fidelity MSCI.
Diversification Opportunities for International Business and Fidelity MSCI
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Fidelity is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Fidelity MSCI Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Consumer and International Business 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 International Business Machines are associated (or correlated) with Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Consumer has no effect on the direction of International Business i.e., International Business and Fidelity MSCI go up and down completely randomly.
Pair Corralation between International Business and Fidelity MSCI
Considering the 90-day investment horizon International Business Machines is expected to under-perform the Fidelity MSCI. In addition to that, International Business is 1.49 times more volatile than Fidelity MSCI Consumer. It trades about -0.08 of its total potential returns per unit of risk. Fidelity MSCI Consumer is currently generating about 0.15 per unit of volatility. If you would invest 9,248 in Fidelity MSCI Consumer on June 8, 2025 and sell it today you would earn a total of 923.00 from holding Fidelity MSCI Consumer or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Fidelity MSCI Consumer
Performance |
| Timeline |
| International Business |
| Fidelity MSCI Consumer |
International Business and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Fidelity MSCI
The main advantage of trading using opposite International Business and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Fidelity MSCI 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 MSCI will offset losses from the drop in Fidelity MSCI's long position.| International Business vs. Cisco Systems | International Business vs. Fiserv, | International Business vs. Intel | International Business vs. Johnson Johnson |
| Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Industrials | Fidelity MSCI vs. Fidelity MSCI Financials | Fidelity MSCI vs. Fidelity MSCI Communication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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