Correlation Between WisdomTree Dynamic and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both WisdomTree Dynamic and WisdomTree International 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 WisdomTree Dynamic and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Dynamic Currency and WisdomTree International High, you can compare the effects of market volatilities on WisdomTree Dynamic and WisdomTree International 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 WisdomTree Dynamic with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Dynamic and WisdomTree International.
Diversification Opportunities for WisdomTree Dynamic and WisdomTree International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Dynamic Currency and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and WisdomTree Dynamic 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 WisdomTree Dynamic Currency are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of WisdomTree Dynamic i.e., WisdomTree Dynamic and WisdomTree International go up and down completely randomly.
Pair Corralation between WisdomTree Dynamic and WisdomTree International
Given the investment horizon of 90 days WisdomTree Dynamic is expected to generate 1.14 times less return on investment than WisdomTree International. But when comparing it to its historical volatility, WisdomTree Dynamic Currency is 1.08 times less risky than WisdomTree International. It trades about 0.39 of its potential returns per unit of risk. WisdomTree International High is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 4,802 in WisdomTree International High on November 20, 2025 and sell it today you would earn a total of 841.00 from holding WisdomTree International High or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Dynamic Currency vs. WisdomTree International High
Performance |
| Timeline |
| WisdomTree Dynamic |
| WisdomTree International |
WisdomTree Dynamic and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Dynamic and WisdomTree International
The main advantage of trading using opposite WisdomTree Dynamic and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Dynamic position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| WisdomTree Dynamic vs. iShares MSCI Poland | WisdomTree Dynamic vs. iShares MSCI Emerging | WisdomTree Dynamic vs. Xtrackers MSCI Japan | WisdomTree Dynamic vs. iShares MSCI Japan |
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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