Correlation Between IShares VII and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both IShares VII 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 IShares VII and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares VII PLC and WisdomTree Emerging Markets, you can compare the effects of market volatilities on IShares VII 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 IShares VII with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and WisdomTree Emerging.
Diversification Opportunities for IShares VII and WisdomTree Emerging
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and WisdomTree is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and IShares VII 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 VII PLC 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 IShares VII i.e., IShares VII and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between IShares VII and WisdomTree Emerging
Assuming the 90 days trading horizon IShares VII is expected to generate 4.44 times less return on investment than WisdomTree Emerging. But when comparing it to its historical volatility, iShares VII PLC is 1.02 times less risky than WisdomTree Emerging. It trades about 0.03 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,306 in WisdomTree Emerging Markets on November 17, 2025 and sell it today you would earn a total of 70.00 from holding WisdomTree Emerging Markets or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares VII PLC vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| iShares VII PLC |
| WisdomTree Emerging |
IShares VII and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and WisdomTree Emerging
The main advantage of trading using opposite IShares VII and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII 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.| IShares VII vs. iShares Global Clean | IShares VII vs. Amundi Index Solutions | IShares VII vs. iShares VII PLC | IShares VII vs. iShares VII PLC |
| WisdomTree Emerging vs. iShares MSCI USA | WisdomTree Emerging vs. Invesco EQQQ NASDAQ 100 | WisdomTree Emerging vs. iShares VII PLC | WisdomTree Emerging vs. iShares MSCI North |
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 Positions Ratings module to 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.
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