Correlation Between WisdomTree Global and AIM ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree Global and AIM ETF 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 Global and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Global High and AIM ETF Products, you can compare the effects of market volatilities on WisdomTree Global and AIM ETF 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 Global with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Global and AIM ETF.
Diversification Opportunities for WisdomTree Global and AIM ETF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and AIM is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Global High and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products and WisdomTree Global 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 Global High are associated (or correlated) with AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of WisdomTree Global i.e., WisdomTree Global and AIM ETF go up and down completely randomly.
Pair Corralation between WisdomTree Global and AIM ETF
Considering the 90-day investment horizon WisdomTree Global High is expected to generate 1.05 times more return on investment than AIM ETF. However, WisdomTree Global is 1.05 times more volatile than AIM ETF Products. It trades about 0.33 of its potential returns per unit of risk. AIM ETF Products is currently generating about 0.1 per unit of risk. If you would invest 5,889 in WisdomTree Global High on November 6, 2025 and sell it today you would earn a total of 719.00 from holding WisdomTree Global High or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Global High vs. AIM ETF Products
Performance |
| Timeline |
| WisdomTree Global High |
| AIM ETF Products |
WisdomTree Global and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Global and AIM ETF
The main advantage of trading using opposite WisdomTree Global and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Global position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF's long position.| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. FT Cboe Vest |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |