Correlation Between Fidelity High and IShares Dividend

Can any of the company-specific risk be diversified away by investing in both Fidelity High and IShares Dividend 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 High and IShares Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidelity High Dividend and iShares Dividend Growers, you can compare the effects of market volatilities on Fidelity High and IShares Dividend 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 High with a short position of IShares Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity High and IShares Dividend.

Diversification Opportunities for Fidelity High and IShares Dividend

0.94

Correlation Coefficient

Fidelity High  IShares Dividend

Almost no diversification

The 3 months correlation between Fidelity and IShares is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity High Dividend and iShares Dividend Growers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Dividend Growers and Fidelity High 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 High Dividend are associated (or correlated) with IShares Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Dividend Growers has no effect on the direction of Fidelity High i.e., Fidelity High and IShares Dividend go up and down completely randomly.

Pair Corralation between Fidelity High and IShares Dividend

Assuming the 90 days trading horizon Fidelity High Dividend is expected to generate 0.98 times more return on investment than IShares Dividend. However, Fidelity High Dividend is 1.02 times less risky than IShares Dividend. It trades about 0.27 of its potential returns per unit of risk. iShares Dividend Growers is currently generating about 0.17 per unit of risk. If you would invest  3,343  in Fidelity High Dividend on April 20, 2025 and sell it today you would earn a total of  490.00  from holding Fidelity High Dividend or generate 14.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Fidelity High Dividend  vs.  iShares Dividend Growers

Fidelity High Dividend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity High Dividend are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fidelity High displayed solid returns over the last few months and may actually be approaching a breakup point.

iShares Dividend Growers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Dividend Growers are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, IShares Dividend may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fidelity High and IShares Dividend

The main advantage of trading using opposite Fidelity High and IShares Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity High position performs unexpectedly, IShares Dividend 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 IShares Dividend will offset losses from the drop in IShares Dividend's long position.

The idea behind Fidelity High Dividend and iShares Dividend Growers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.