Correlation Between IShares Financial and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both IShares Financial 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 IShares Financial and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Financial Services and Fidelity MSCI Financials, you can compare the effects of market volatilities on IShares Financial 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 IShares Financial with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Financial and Fidelity MSCI.
Diversification Opportunities for IShares Financial and Fidelity MSCI
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Fidelity is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding iShares Financial Services and Fidelity MSCI Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Financials and IShares Financial 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 iShares Financial Services 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 Financials has no effect on the direction of IShares Financial i.e., IShares Financial and Fidelity MSCI go up and down completely randomly.
Pair Corralation between IShares Financial and Fidelity MSCI
Considering the 90-day investment horizon iShares Financial Services is expected to generate 1.0 times more return on investment than Fidelity MSCI. However, iShares Financial Services is 1.0 times less risky than Fidelity MSCI. It trades about 0.04 of its potential returns per unit of risk. Fidelity MSCI Financials is currently generating about 0.01 per unit of risk. If you would invest 8,778 in iShares Financial Services on August 14, 2025 and sell it today you would earn a total of 158.00 from holding iShares Financial Services or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Financial Services vs. Fidelity MSCI Financials
Performance |
| Timeline |
| iShares Financial |
| Fidelity MSCI Financials |
IShares Financial and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Financial and Fidelity MSCI
The main advantage of trading using opposite IShares Financial and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Financial 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.| IShares Financial vs. iShares Industrials ETF | IShares Financial vs. iShares Consumer Discretionary | IShares Financial vs. iShares Utilities ETF | IShares Financial vs. iShares Russell 2500 |
| Fidelity MSCI vs. Fidelity MSCI Health | Fidelity MSCI vs. Fidelity MSCI Utilities | Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. iShares MSCI USA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |