Correlation Between WisdomTree Global and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both WisdomTree Global 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 WisdomTree Global and WisdomTree Emerging 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 WisdomTree Emerging Markets, you can compare the effects of market volatilities on WisdomTree Global 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 WisdomTree Global with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Global and WisdomTree Emerging.
Diversification Opportunities for WisdomTree Global and WisdomTree Emerging
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Global High and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging 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 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 WisdomTree Global i.e., WisdomTree Global and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between WisdomTree Global and WisdomTree Emerging
Considering the 90-day investment horizon WisdomTree Global High is expected to generate 0.85 times more return on investment than WisdomTree Emerging. However, WisdomTree Global High is 1.18 times less risky than WisdomTree Emerging. It trades about 0.31 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.22 per unit of risk. If you would invest 6,033 in WisdomTree Global High on November 11, 2025 and sell it today you would earn a total of 738.00 from holding WisdomTree Global High or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Global High vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| WisdomTree Global High |
| WisdomTree Emerging |
WisdomTree Global and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Global and WisdomTree Emerging
The main advantage of trading using opposite WisdomTree Global and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Global 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.| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
| WisdomTree Emerging vs. WisdomTree Emerging Markets | WisdomTree Emerging vs. Goldman Sachs MarketBeta | WisdomTree Emerging vs. First Trust RiverFront | WisdomTree Emerging vs. EA Series Trust |
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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