Correlation Between WisdomTree Europe and Discipline Fund
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and Discipline Fund 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 Discipline Fund 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 Discipline Fund ETF, you can compare the effects of market volatilities on WisdomTree Europe and Discipline Fund 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 Discipline Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and Discipline Fund.
Diversification Opportunities for WisdomTree Europe and Discipline Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and Discipline is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and Discipline Fund ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discipline Fund ETF 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 Discipline Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discipline Fund ETF has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and Discipline Fund go up and down completely randomly.
Pair Corralation between WisdomTree Europe and Discipline Fund
If you would invest 6,973 in WisdomTree Europe SmallCap on December 5, 2025 and sell it today you would earn a total of 463.00 from holding WisdomTree Europe SmallCap or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 1.64% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. Discipline Fund ETF
Performance |
| Timeline |
| WisdomTree Europe |
| Discipline Fund ETF |
Risk-Adjusted Performance
Weakest
Weak | Strong |
WisdomTree Europe and Discipline Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and Discipline Fund
The main advantage of trading using opposite WisdomTree Europe and Discipline Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, Discipline Fund 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 Discipline Fund will offset losses from the drop in Discipline Fund'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 |
| Discipline Fund vs. Collaborative Investment Series | Discipline Fund vs. BNY Mellon ETF | Discipline Fund vs. FundX Investment Trust | Discipline Fund vs. Praxis Funds |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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