Correlation Between WisdomTree Japan and Axonic Strategic
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and Axonic Strategic 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 Japan and Axonic Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Japan SmallCap and Axonic Strategic Income, you can compare the effects of market volatilities on WisdomTree Japan and Axonic Strategic 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 Japan with a short position of Axonic Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and Axonic Strategic.
Diversification Opportunities for WisdomTree Japan and Axonic Strategic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and Axonic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan SmallCap and Axonic Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonic Strategic Income and WisdomTree Japan 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 Japan SmallCap are associated (or correlated) with Axonic Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonic Strategic Income has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and Axonic Strategic go up and down completely randomly.
Pair Corralation between WisdomTree Japan and Axonic Strategic
Considering the 90-day investment horizon WisdomTree Japan SmallCap is expected to generate 8.01 times more return on investment than Axonic Strategic. However, WisdomTree Japan is 8.01 times more volatile than Axonic Strategic Income. It trades about 0.24 of its potential returns per unit of risk. Axonic Strategic Income is currently generating about 0.07 per unit of risk. If you would invest 9,045 in WisdomTree Japan SmallCap on November 5, 2025 and sell it today you would earn a total of 1,094 from holding WisdomTree Japan SmallCap or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan SmallCap vs. Axonic Strategic Income
Performance |
| Timeline |
| WisdomTree Japan SmallCap |
| Axonic Strategic Income |
WisdomTree Japan and Axonic Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and Axonic Strategic
The main advantage of trading using opposite WisdomTree Japan and Axonic Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, Axonic Strategic 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 Axonic Strategic will offset losses from the drop in Axonic Strategic's long position.| WisdomTree Japan vs. WisdomTree SmallCap Quality | WisdomTree Japan vs. iShares MSCI Indonesia | WisdomTree Japan vs. WisdomTree Cloud Computing | WisdomTree Japan vs. Davis Select Financial |
| Axonic Strategic vs. Axonic Strategic Income | Axonic Strategic vs. FT Vest Equity | Axonic Strategic vs. Zillow Group Class | Axonic Strategic vs. Northern Lights |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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