Correlation Between BRP and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both BRP and WisdomTree Japan 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 BRP and WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRP Inc and WisdomTree Japan Hedged, you can compare the effects of market volatilities on BRP and WisdomTree Japan 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 BRP with a short position of WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP and WisdomTree Japan.
Diversification Opportunities for BRP and WisdomTree Japan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRP and WisdomTree is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged and BRP 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 BRP Inc are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of BRP i.e., BRP and WisdomTree Japan go up and down completely randomly.
Pair Corralation between BRP and WisdomTree Japan
Considering the 90-day investment horizon BRP is expected to generate 2.55 times less return on investment than WisdomTree Japan. In addition to that, BRP is 2.35 times more volatile than WisdomTree Japan Hedged. It trades about 0.05 of its total potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.3 per unit of volatility. If you would invest 4,433 in WisdomTree Japan Hedged on November 30, 2025 and sell it today you would earn a total of 569.00 from holding WisdomTree Japan Hedged or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 67.21% |
| Values | Daily Returns |
BRP Inc vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| BRP Inc |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
BRP and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP and WisdomTree Japan
The main advantage of trading using opposite BRP and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP position performs unexpectedly, WisdomTree Japan 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 Japan will offset losses from the drop in WisdomTree Japan's long position.| BRP vs. iShares Digital Infrastructure | BRP vs. iShares MSCI USA | BRP vs. Knowledge Leaders Developed | BRP vs. AIM ETF Products |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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