Correlation Between WisdomTree Emerging and YieldMax Ultra

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Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and YieldMax Ultra 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 YieldMax Ultra 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 YieldMax Ultra Option, you can compare the effects of market volatilities on WisdomTree Emerging and YieldMax Ultra 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 YieldMax Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and YieldMax Ultra.

Diversification Opportunities for WisdomTree Emerging and YieldMax Ultra

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between WisdomTree and YieldMax is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and YieldMax Ultra Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax Ultra Option 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 YieldMax Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax Ultra Option has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and YieldMax Ultra go up and down completely randomly.

Pair Corralation between WisdomTree Emerging and YieldMax Ultra

Considering the 90-day investment horizon WisdomTree Emerging Markets is expected to generate 0.46 times more return on investment than YieldMax Ultra. However, WisdomTree Emerging Markets is 2.17 times less risky than YieldMax Ultra. It trades about 0.07 of its potential returns per unit of risk. YieldMax Ultra Option is currently generating about -0.21 per unit of risk. If you would invest  4,428  in WisdomTree Emerging Markets on September 29, 2025 and sell it today you would earn a total of  256.00  from holding WisdomTree Emerging Markets or generate 5.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

WisdomTree Emerging Markets  vs.  YieldMax Ultra Option

 Performance 
       Timeline  
WisdomTree Emerging 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Emerging Markets are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, WisdomTree Emerging is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
YieldMax Ultra Option 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days YieldMax Ultra Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.

WisdomTree Emerging and YieldMax Ultra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Emerging and YieldMax Ultra

The main advantage of trading using opposite WisdomTree Emerging and YieldMax Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, YieldMax Ultra 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 YieldMax Ultra will offset losses from the drop in YieldMax Ultra's long position.
The idea behind WisdomTree Emerging Markets and YieldMax Ultra Option 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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