Correlation Between WisdomTree Japan and RBB Fund
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and RBB Fund 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 Japan and RBB Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Japan Hedged and The RBB Fund, you can compare the effects of market volatilities on WisdomTree Japan and RBB Fund 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 Japan with a short position of RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and RBB Fund.
Diversification Opportunities for WisdomTree Japan and RBB Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and RBB is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund and WisdomTree Japan 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 Japan Hedged are associated (or correlated) with RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and RBB Fund go up and down completely randomly.
Pair Corralation between WisdomTree Japan and RBB Fund
Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 1.1 times more return on investment than RBB Fund. However, WisdomTree Japan is 1.1 times more volatile than The RBB Fund. It trades about 0.27 of its potential returns per unit of risk. The RBB Fund is currently generating about 0.17 per unit of risk. If you would invest 13,659 in WisdomTree Japan Hedged on November 10, 2025 and sell it today you would earn a total of 2,704 from holding WisdomTree Japan Hedged or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. The RBB Fund
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| RBB Fund |
WisdomTree Japan and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and RBB Fund
The main advantage of trading using opposite WisdomTree Japan and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.| WisdomTree Japan vs. Pacer Small Cap | WisdomTree Japan vs. WisdomTree MidCap Dividend | WisdomTree Japan vs. iShares Financials ETF | WisdomTree Japan vs. SPDR SP 600 |
| RBB Fund vs. Managed Portfolio Series | RBB Fund vs. ProShares Ultra Utilities | RBB Fund vs. Series Portfolios Trust | RBB Fund vs. JP Morgan Exchange Traded |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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