Correlation Between WisdomTree Emerging and One One
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and One One 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 Emerging and One One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Emerging Markets and One One SP, you can compare the effects of market volatilities on WisdomTree Emerging and One One 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 Emerging with a short position of One One. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and One One.
Diversification Opportunities for WisdomTree Emerging and One One
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and One is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and One One SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One One SP and WisdomTree Emerging 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 Emerging Markets are associated (or correlated) with One One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One One SP has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and One One go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and One One
Considering the 90-day investment horizon WisdomTree Emerging Markets is expected to generate 0.13 times more return on investment than One One. However, WisdomTree Emerging Markets is 7.55 times less risky than One One. It trades about 0.17 of its potential returns per unit of risk. One One SP is currently generating about -0.04 per unit of risk. If you would invest 2,867 in WisdomTree Emerging Markets on September 28, 2025 and sell it today you would earn a total of 39.00 from holding WisdomTree Emerging Markets or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. One One SP
Performance |
| Timeline |
| WisdomTree Emerging |
| One One SP |
WisdomTree Emerging and One One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and One One
The main advantage of trading using opposite WisdomTree Emerging and One One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, One One 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 One One will offset losses from the drop in One One's long position.| WisdomTree Emerging vs. BlackRock High Yield | WisdomTree Emerging vs. Xtrackers MSCI Emerging | WisdomTree Emerging vs. MarketDesk Focused Dividend | WisdomTree Emerging vs. Trust For Professional |
| One One vs. TradersAI Large Cap | One One vs. Global X SP | One One vs. First Trust Exchange Traded | One One vs. ProShares Supply Chain |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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