Correlation Between Utilities Select and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both Utilities Select 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 Utilities Select and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utilities Select Sector and Fidelity MSCI Utilities, you can compare the effects of market volatilities on Utilities Select 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 Utilities Select with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utilities Select and Fidelity MSCI.
Diversification Opportunities for Utilities Select and Fidelity MSCI
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Utilities and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Utilities Select Sector and Fidelity MSCI Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Utilities and Utilities Select 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 Utilities Select Sector 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 Utilities has no effect on the direction of Utilities Select i.e., Utilities Select and Fidelity MSCI go up and down completely randomly.
Pair Corralation between Utilities Select and Fidelity MSCI
Considering the 90-day investment horizon Utilities Select is expected to generate 1.02 times less return on investment than Fidelity MSCI. In addition to that, Utilities Select is 1.02 times more volatile than Fidelity MSCI Utilities. It trades about 0.17 of its total potential returns per unit of risk. Fidelity MSCI Utilities is currently generating about 0.17 per unit of volatility. If you would invest 5,392 in Fidelity MSCI Utilities on September 2, 2025 and sell it today you would earn a total of 463.00 from holding Fidelity MSCI Utilities or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Utilities Select Sector vs. Fidelity MSCI Utilities
Performance |
| Timeline |
| Utilities Select Sector |
| Fidelity MSCI Utilities |
Utilities Select and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utilities Select and Fidelity MSCI
The main advantage of trading using opposite Utilities Select and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utilities Select 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.| Utilities Select vs. Ultimus Managers Trust | Utilities Select vs. American Beacon Select | Utilities Select vs. Direxion Daily SP | Utilities Select vs. EA Series Trust |
| Fidelity MSCI vs. Ultimus Managers Trust | Fidelity MSCI vs. American Beacon Select | Fidelity MSCI vs. Direxion Daily SP | Fidelity MSCI vs. EA Series 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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