Correlation Between Dimensional ETF and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF and WisdomTree International 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 International 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 International MidCap, you can compare the effects of market volatilities on Dimensional ETF and WisdomTree International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and WisdomTree International.
Diversification Opportunities for Dimensional ETF and WisdomTree International
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dimensional and WisdomTree is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and WisdomTree International MidCa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and WisdomTree International go up and down completely randomly.
Pair Corralation between Dimensional ETF and WisdomTree International
Given the investment horizon of 90 days Dimensional ETF Trust is expected to generate 1.04 times more return on investment than WisdomTree International. However, Dimensional ETF is 1.04 times more volatile than WisdomTree International MidCap. It trades about 0.27 of its potential returns per unit of risk. WisdomTree International MidCap is currently generating about 0.26 per unit of risk. If you would invest 3,132 in Dimensional ETF Trust on November 10, 2025 and sell it today you would earn a total of 419.00 from holding Dimensional ETF Trust or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. WisdomTree International MidCa
Performance |
| Timeline |
| Dimensional ETF Trust |
| WisdomTree International |
Dimensional ETF and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and WisdomTree International
The main advantage of trading using opposite Dimensional ETF and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| Dimensional ETF vs. Dimensional International High | Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. SPDR SP 600 | Dimensional ETF vs. Pacer Small Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |