Correlation Between WisdomTree Emerging and SP Funds
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and SP Funds 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 Emerging and SP Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Emerging Markets and SP Funds SP, you can compare the effects of market volatilities on WisdomTree Emerging and SP Funds 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 Emerging with a short position of SP Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and SP Funds.
Diversification Opportunities for WisdomTree Emerging and SP Funds
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and SPUS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and SP Funds SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Funds SP and WisdomTree 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 WisdomTree Emerging Markets are associated (or correlated) with SP Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Funds SP has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and SP Funds go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and SP Funds
Considering the 90-day investment horizon WisdomTree Emerging Markets is expected to generate 0.74 times more return on investment than SP Funds. However, WisdomTree Emerging Markets is 1.35 times less risky than SP Funds. It trades about 0.24 of its potential returns per unit of risk. SP Funds SP is currently generating about 0.01 per unit of risk. If you would invest 5,655 in WisdomTree Emerging Markets on November 10, 2025 and sell it today you would earn a total of 571.00 from holding WisdomTree Emerging Markets or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. SP Funds SP
Performance |
| Timeline |
| WisdomTree Emerging |
| SP Funds SP |
WisdomTree Emerging and SP Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and SP Funds
The main advantage of trading using opposite WisdomTree Emerging and SP Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, SP Funds 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 SP Funds will offset losses from the drop in SP Funds' long position.| WisdomTree Emerging vs. WisdomTree SmallCap Dividend | WisdomTree Emerging vs. Freedom 100 Emerging | WisdomTree Emerging vs. WisdomTree High Dividend | WisdomTree Emerging vs. Invesco FTSE RAFI |
| SP Funds vs. JPMorgan Momentum Factor | SP Funds vs. Invesco SP 500 | SP Funds vs. iShares Industrials ETF | SP Funds vs. Innovator Defined Wealth |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |