Correlation Between WisdomTree Japan and Invesco Raymond
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and Invesco Raymond 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 Invesco Raymond 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 Invesco Raymond James, you can compare the effects of market volatilities on WisdomTree Japan and Invesco Raymond 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 Invesco Raymond. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and Invesco Raymond.
Diversification Opportunities for WisdomTree Japan and Invesco Raymond
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between WisdomTree and Invesco is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and Invesco Raymond James in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Raymond James 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 Invesco Raymond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Raymond James has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and Invesco Raymond go up and down completely randomly.
Pair Corralation between WisdomTree Japan and Invesco Raymond
Given the investment horizon of 90 days WisdomTree Japan is expected to generate 1.13 times less return on investment than Invesco Raymond. In addition to that, WisdomTree Japan is 1.36 times more volatile than Invesco Raymond James. It trades about 0.03 of its total potential returns per unit of risk. Invesco Raymond James is currently generating about 0.04 per unit of volatility. If you would invest 6,481 in Invesco Raymond James on October 3, 2025 and sell it today you would earn a total of 1,006 from holding Invesco Raymond James or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.37% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. Invesco Raymond James
Performance |
| Timeline |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Invesco Raymond James |
WisdomTree Japan and Invesco Raymond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and Invesco Raymond
The main advantage of trading using opposite WisdomTree Japan and Invesco Raymond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, Invesco Raymond 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 Invesco Raymond will offset losses from the drop in Invesco Raymond's long position.The idea behind WisdomTree Japan Hedged and Invesco Raymond James 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.| Invesco Raymond vs. ERShares Entrepreneurs ETF | Invesco Raymond vs. GraniteShares ETF Trust | Invesco Raymond vs. Invesco Next Gen | Invesco Raymond vs. Invesco Next Gen |
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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