Correlation Between IShares Trust and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Fidelity Managed 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 Trust and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Fidelity Managed Futures, you can compare the effects of market volatilities on IShares Trust and Fidelity Managed 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 Trust with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Fidelity Managed.
Diversification Opportunities for IShares Trust and Fidelity Managed
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Fidelity is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Fidelity Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Managed Futures and IShares Trust 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 Trust are associated (or correlated) with Fidelity Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Managed Futures has no effect on the direction of IShares Trust i.e., IShares Trust and Fidelity Managed go up and down completely randomly.
Pair Corralation between IShares Trust and Fidelity Managed
Given the investment horizon of 90 days iShares Trust is expected to generate 0.36 times more return on investment than Fidelity Managed. However, iShares Trust is 2.79 times less risky than Fidelity Managed. It trades about 0.18 of its potential returns per unit of risk. Fidelity Managed Futures is currently generating about 0.02 per unit of risk. If you would invest 2,467 in iShares Trust on June 6, 2025 and sell it today you would earn a total of 42.00 from holding iShares Trust or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
iShares Trust vs. Fidelity Managed Futures
Performance |
| Timeline |
| iShares Trust |
| Fidelity Managed Futures |
IShares Trust and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Fidelity Managed
The main advantage of trading using opposite IShares Trust and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Fidelity Managed 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 Managed will offset losses from the drop in Fidelity Managed's long position.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
| Fidelity Managed vs. iMGP DBi Managed | Fidelity Managed vs. First Trust Managed | Fidelity Managed vs. First Trust LongShort | Fidelity Managed vs. SPDR SSgA Multi Asset |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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