Correlation Between WisdomTree International and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and SPDR Gold 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 International and SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Equity and SPDR Gold Mini, you can compare the effects of market volatilities on WisdomTree International and SPDR Gold 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 International with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and SPDR Gold.
Diversification Opportunities for WisdomTree International and SPDR Gold
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and SPDR is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and SPDR Gold Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Mini and WisdomTree International 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 International Equity are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Mini has no effect on the direction of WisdomTree International i.e., WisdomTree International and SPDR Gold go up and down completely randomly.
Pair Corralation between WisdomTree International and SPDR Gold
Considering the 90-day investment horizon WisdomTree International is expected to generate 2.56 times less return on investment than SPDR Gold. But when comparing it to its historical volatility, WisdomTree International Equity is 2.83 times less risky than SPDR Gold. It trades about 0.17 of its potential returns per unit of risk. SPDR Gold Mini is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,319 in SPDR Gold Mini on December 5, 2025 and sell it today you would earn a total of 1,843 from holding SPDR Gold Mini or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
WisdomTree International Equit vs. SPDR Gold Mini
Performance |
| Timeline |
| WisdomTree International |
| SPDR Gold Mini |
WisdomTree International and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and SPDR Gold
The main advantage of trading using opposite WisdomTree International and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.The idea behind WisdomTree International Equity and SPDR Gold Mini pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| SPDR Gold vs. iShares MSCI Japan | SPDR Gold vs. WisdomTree Floating Rate | SPDR Gold vs. Schwab Fundamental International | SPDR Gold vs. Vanguard Health Care |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |