Correlation Between WisdomTree Europe and YieldMax AMZN
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and YieldMax AMZN 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 Europe and YieldMax AMZN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Europe SmallCap and YieldMax AMZN Option, you can compare the effects of market volatilities on WisdomTree Europe and YieldMax AMZN 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 Europe with a short position of YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and YieldMax AMZN.
Diversification Opportunities for WisdomTree Europe and YieldMax AMZN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and YieldMax is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option and WisdomTree Europe 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 Europe SmallCap are associated (or correlated) with YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and YieldMax AMZN go up and down completely randomly.
Pair Corralation between WisdomTree Europe and YieldMax AMZN
Considering the 90-day investment horizon WisdomTree Europe SmallCap is expected to generate 0.52 times more return on investment than YieldMax AMZN. However, WisdomTree Europe SmallCap is 1.91 times less risky than YieldMax AMZN. It trades about 0.27 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about -0.12 per unit of risk. If you would invest 6,895 in WisdomTree Europe SmallCap on November 30, 2025 and sell it today you would earn a total of 873.00 from holding WisdomTree Europe SmallCap or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. YieldMax AMZN Option
Performance |
| Timeline |
| WisdomTree Europe |
| YieldMax AMZN Option |
WisdomTree Europe and YieldMax AMZN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and YieldMax AMZN
The main advantage of trading using opposite WisdomTree Europe and YieldMax AMZN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, YieldMax AMZN 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 AMZN will offset losses from the drop in YieldMax AMZN's long position.| WisdomTree Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares MSCI Japan |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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