Correlation Between WisdomTree International and Fundamental Income
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and Fundamental Income 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 Fundamental Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Multifactor and Fundamental Income Net, you can compare the effects of market volatilities on WisdomTree International and Fundamental Income 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 Fundamental Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Fundamental Income.
Diversification Opportunities for WisdomTree International and Fundamental Income
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WisdomTree and Fundamental is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Multi and Fundamental Income Net in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Income Net 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 Multifactor are associated (or correlated) with Fundamental Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Income Net has no effect on the direction of WisdomTree International i.e., WisdomTree International and Fundamental Income go up and down completely randomly.
Pair Corralation between WisdomTree International and Fundamental Income
Given the investment horizon of 90 days WisdomTree International Multifactor is expected to generate 0.68 times more return on investment than Fundamental Income. However, WisdomTree International Multifactor is 1.46 times less risky than Fundamental Income. It trades about 0.1 of its potential returns per unit of risk. Fundamental Income Net is currently generating about 0.02 per unit of risk. If you would invest 2,380 in WisdomTree International Multifactor on October 14, 2025 and sell it today you would earn a total of 944.00 from holding WisdomTree International Multifactor or generate 39.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
WisdomTree International Multi vs. Fundamental Income Net
Performance |
| Timeline |
| WisdomTree International |
| Fundamental Income Net |
WisdomTree International and Fundamental Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and Fundamental Income
The main advantage of trading using opposite WisdomTree International and Fundamental Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, Fundamental Income 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 Fundamental Income will offset losses from the drop in Fundamental Income's long position.| WisdomTree International vs. iShares Russell Top | WisdomTree International vs. iShares Edge MSCI | WisdomTree International vs. iShares Infrastructure ETF | WisdomTree International vs. iShares MSCI USA |
| Fundamental Income vs. Investment Managers Series | Fundamental Income vs. Amplify Travel Tech | Fundamental Income vs. Cohen Steers Natural | Fundamental Income vs. Strategy Shares |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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