Correlation Between WisdomTree Emerging and VanEck JP
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and VanEck JP 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 Emerging and VanEck JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Emerging Markets and VanEck JP Morgan, you can compare the effects of market volatilities on WisdomTree Emerging and VanEck JP 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 Emerging with a short position of VanEck JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and VanEck JP.
Diversification Opportunities for WisdomTree Emerging and VanEck JP
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and VanEck is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and VanEck JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck JP Morgan and WisdomTree Emerging 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 Emerging Markets are associated (or correlated) with VanEck JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck JP Morgan has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and VanEck JP go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and VanEck JP
Assuming the 90 days trading horizon WisdomTree Emerging Markets is expected to generate 1.8 times more return on investment than VanEck JP. However, WisdomTree Emerging is 1.8 times more volatile than VanEck JP Morgan. It trades about 0.2 of its potential returns per unit of risk. VanEck JP Morgan is currently generating about 0.05 per unit of risk. If you would invest 1,315 in WisdomTree Emerging Markets on November 28, 2025 and sell it today you would earn a total of 113.00 from holding WisdomTree Emerging Markets or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.97% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. VanEck JP Morgan
Performance |
| Timeline |
| WisdomTree Emerging |
| VanEck JP Morgan |
WisdomTree Emerging and VanEck JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and VanEck JP
The main advantage of trading using opposite WisdomTree Emerging and VanEck JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, VanEck JP 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 VanEck JP will offset losses from the drop in VanEck JP's long position.| WisdomTree Emerging vs. iShares Gold ETF | WisdomTree Emerging vs. iShares MSCI AC | WisdomTree Emerging vs. Lyxor MSCI Emerging | WisdomTree Emerging vs. iShares Global Inflation |
| VanEck JP vs. SPDR Bloomberg Emerging | VanEck JP vs. PIMCO Emerging Markets | VanEck JP vs. iShares TecDAX UCITS | VanEck JP vs. Xtrackers Switzerland UCITS |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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