Correlation Between Dimensional Emerging and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Dimensional Emerging 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 Emerging 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 Emerging Markets and WisdomTree International High, you can compare the effects of market volatilities on Dimensional Emerging 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 Emerging with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional Emerging and WisdomTree International.
Diversification Opportunities for Dimensional Emerging and WisdomTree International
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dimensional and WisdomTree is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional Emerging Markets and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Dimensional Emerging 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 Emerging Markets 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 Emerging i.e., Dimensional Emerging and WisdomTree International go up and down completely randomly.
Pair Corralation between Dimensional Emerging and WisdomTree International
Given the investment horizon of 90 days Dimensional Emerging Markets is expected to generate 1.72 times more return on investment than WisdomTree International. However, Dimensional Emerging is 1.72 times more volatile than WisdomTree International High. It trades about 0.27 of its potential returns per unit of risk. WisdomTree International High is currently generating about 0.34 per unit of risk. If you would invest 4,087 in Dimensional Emerging Markets on October 5, 2025 and sell it today you would earn a total of 153.00 from holding Dimensional Emerging Markets or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional Emerging Markets vs. WisdomTree International High
Performance |
| Timeline |
| Dimensional Emerging |
| WisdomTree International |
Dimensional Emerging and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional Emerging and WisdomTree International
The main advantage of trading using opposite Dimensional Emerging and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional Emerging 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 Emerging vs. SPDR SP International | Dimensional Emerging vs. Elm Market Navigator | Dimensional Emerging vs. Davis Select Worldwide | Dimensional Emerging vs. Invesco DWA Developed |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |