Correlation Between WisdomTree Emerging and IQ Hedge
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and IQ Hedge 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 IQ Hedge 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 IQ Hedge Multi Strategy, you can compare the effects of market volatilities on WisdomTree Emerging and IQ Hedge 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 IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and IQ Hedge.
Diversification Opportunities for WisdomTree Emerging and IQ Hedge
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and QAI is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and IQ Hedge Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Hedge Multi 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 IQ Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Hedge Multi has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and IQ Hedge go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and IQ Hedge
Considering the 90-day investment horizon WisdomTree Emerging Markets is expected to generate 0.99 times more return on investment than IQ Hedge. However, WisdomTree Emerging Markets is 1.01 times less risky than IQ Hedge. It trades about 0.2 of its potential returns per unit of risk. IQ Hedge Multi Strategy is currently generating about 0.15 per unit of risk. If you would invest 2,821 in WisdomTree Emerging Markets on November 3, 2025 and sell it today you would earn a total of 146.00 from holding WisdomTree Emerging Markets or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. IQ Hedge Multi Strategy
Performance |
| Timeline |
| WisdomTree Emerging |
| IQ Hedge Multi |
WisdomTree Emerging and IQ Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and IQ Hedge
The main advantage of trading using opposite WisdomTree Emerging and IQ Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, IQ Hedge 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 IQ Hedge will offset losses from the drop in IQ Hedge'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 |
| IQ Hedge vs. Tortoise Capital Series | IQ Hedge vs. iShares MSCI Singapore | IQ Hedge vs. iShares Transportation Average | IQ Hedge vs. Invesco Russell 1000 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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