Correlation Between Dimensional ETF and WisdomTree High
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF and WisdomTree High 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 Dimensional ETF and WisdomTree High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and WisdomTree High Dividend, you can compare the effects of market volatilities on Dimensional ETF and WisdomTree High 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 Dimensional ETF with a short position of WisdomTree High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and WisdomTree High.
Diversification Opportunities for Dimensional ETF and WisdomTree High
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dimensional and WisdomTree is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and WisdomTree High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High Dividend and Dimensional ETF 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 Dimensional ETF Trust are associated (or correlated) with WisdomTree High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree High Dividend has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and WisdomTree High go up and down completely randomly.
Pair Corralation between Dimensional ETF and WisdomTree High
Given the investment horizon of 90 days Dimensional ETF Trust is expected to generate 1.05 times more return on investment than WisdomTree High. However, Dimensional ETF is 1.05 times more volatile than WisdomTree High Dividend. It trades about 0.2 of its potential returns per unit of risk. WisdomTree High Dividend is currently generating about 0.11 per unit of risk. If you would invest 3,297 in Dimensional ETF Trust on October 3, 2025 and sell it today you would earn a total of 77.00 from holding Dimensional ETF Trust or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. WisdomTree High Dividend
Performance |
| Timeline |
| Dimensional ETF Trust |
| WisdomTree High Dividend |
Dimensional ETF and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and WisdomTree High
The main advantage of trading using opposite Dimensional ETF and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF position performs unexpectedly, WisdomTree High 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 High will offset losses from the drop in WisdomTree High's long position.| Dimensional ETF vs. JPMorgan International Bond | Dimensional ETF vs. Goldman Sachs ActiveBeta | Dimensional ETF vs. Columbia EM Core | Dimensional ETF vs. iShares MSCI Emerging |
| WisdomTree High vs. WisdomTree Earnings 500 | WisdomTree High vs. Pacer Developed Markets | WisdomTree High vs. iShares Consumer Staples | WisdomTree High vs. iShares MSCI Switzerland |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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