Correlation Between CoreCommodity Natural and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both CoreCommodity Natural and WisdomTree Emerging 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 CoreCommodity Natural and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCommodity Natural Resources and WisdomTree Emerging Markets, you can compare the effects of market volatilities on CoreCommodity Natural and WisdomTree Emerging 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 CoreCommodity Natural with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCommodity Natural and WisdomTree Emerging.
Diversification Opportunities for CoreCommodity Natural and WisdomTree Emerging
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CoreCommodity and WisdomTree is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CoreCommodity Natural Resource and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and CoreCommodity Natural 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 CoreCommodity Natural Resources are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of CoreCommodity Natural i.e., CoreCommodity Natural and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between CoreCommodity Natural and WisdomTree Emerging
Given the investment horizon of 90 days CoreCommodity Natural Resources is expected to generate 1.82 times more return on investment than WisdomTree Emerging. However, CoreCommodity Natural is 1.82 times more volatile than WisdomTree Emerging Markets. It trades about 0.34 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.35 per unit of risk. If you would invest 3,150 in CoreCommodity Natural Resources on November 29, 2025 and sell it today you would earn a total of 888.90 from holding CoreCommodity Natural Resources or generate 28.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCommodity Natural Resource vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| CoreCommodity Natural |
| WisdomTree Emerging |
CoreCommodity Natural and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCommodity Natural and WisdomTree Emerging
The main advantage of trading using opposite CoreCommodity Natural and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCommodity Natural position performs unexpectedly, WisdomTree Emerging 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 WisdomTree Emerging will offset losses from the drop in WisdomTree Emerging's long position.| CoreCommodity Natural vs. InfraCap MLP ETF | CoreCommodity Natural vs. American Century ETF | CoreCommodity Natural vs. PIMCO RAFI Dynamic | CoreCommodity Natural vs. Simplify Exchange Traded |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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