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
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and Invesco is 0.46. 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
If you would invest 7,370 in Invesco Raymond James on October 29, 2025 and sell it today you would earn a total of 324.03 from holding Invesco Raymond James or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.64% |
| 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. iShares MSCI Global | Invesco Raymond vs. Franklin Income Equity | Invesco Raymond vs. Knowledge Leaders Developed | Invesco Raymond vs. iShares Digital Infrastructure |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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