Correlation Between WisdomTree Japan and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg Emerging, you can compare the effects of market volatilities on WisdomTree Japan and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and SPDR Bloomberg.
Diversification Opportunities for WisdomTree Japan and SPDR Bloomberg
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 Japan Hedged and SPDR Bloomberg Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Emerging 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Emerging has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between WisdomTree Japan and SPDR Bloomberg
Given the investment horizon of 90 days WisdomTree Japan Hedged is expected to generate 3.72 times more return on investment than SPDR Bloomberg. However, WisdomTree Japan is 3.72 times more volatile than SPDR Bloomberg Emerging. It trades about 0.3 of its potential returns per unit of risk. SPDR Bloomberg Emerging is currently generating about 0.25 per unit of risk. 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 | Very Strong |
| Accuracy | 67.21% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. SPDR Bloomberg Emerging
Performance |
| Timeline |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
| SPDR Bloomberg Emerging |
WisdomTree Japan and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and SPDR Bloomberg
The main advantage of trading using opposite WisdomTree Japan and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, SPDR Bloomberg 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 Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.The idea behind WisdomTree Japan Hedged and SPDR Bloomberg Emerging 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 Bloomberg vs. SPDR MSCI ACWI | SPDR Bloomberg vs. iShares MSCI Mexico | SPDR Bloomberg vs. SPDR Portfolio Corporate | SPDR Bloomberg vs. WisdomTree International Hedged |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |