Correlation Between WisdomTree Japan and YieldMax MSFT
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and YieldMax MSFT 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 YieldMax MSFT 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 YieldMax MSFT Option, you can compare the effects of market volatilities on WisdomTree Japan and YieldMax MSFT 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 YieldMax MSFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and YieldMax MSFT.
Diversification Opportunities for WisdomTree Japan and YieldMax MSFT
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and YieldMax is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and YieldMax MSFT Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax MSFT Option 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 YieldMax MSFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax MSFT Option has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and YieldMax MSFT go up and down completely randomly.
Pair Corralation between WisdomTree Japan and YieldMax MSFT
Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 0.58 times more return on investment than YieldMax MSFT. However, WisdomTree Japan Hedged is 1.73 times less risky than YieldMax MSFT. It trades about 0.32 of its potential returns per unit of risk. YieldMax MSFT Option is currently generating about -0.15 per unit of risk. If you would invest 13,906 in WisdomTree Japan Hedged on December 1, 2025 and sell it today you would earn a total of 3,052 from holding WisdomTree Japan Hedged or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. YieldMax MSFT Option
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| YieldMax MSFT Option |
WisdomTree Japan and YieldMax MSFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and YieldMax MSFT
The main advantage of trading using opposite WisdomTree Japan and YieldMax MSFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, YieldMax MSFT 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 YieldMax MSFT will offset losses from the drop in YieldMax MSFT'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 |
| YieldMax MSFT vs. Pacer Swan SOS | YieldMax MSFT vs. NestYield Total Return | YieldMax MSFT vs. Direxion Daily Retail | YieldMax MSFT vs. The Nightview ETF |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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