Correlation Between WisdomTree Emerging and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and DoubleLine ETF 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 DoubleLine ETF 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 DoubleLine ETF Trust, you can compare the effects of market volatilities on WisdomTree Emerging and DoubleLine ETF 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 DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and DoubleLine ETF.
Diversification Opportunities for WisdomTree Emerging and DoubleLine ETF
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and DoubleLine is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and DoubleLine ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine ETF Trust 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 DoubleLine ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine ETF Trust has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and DoubleLine ETF go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and DoubleLine ETF
Given the investment horizon of 90 days WisdomTree Emerging is expected to generate 1.36 times less return on investment than DoubleLine ETF. In addition to that, WisdomTree Emerging is 2.09 times more volatile than DoubleLine ETF Trust. It trades about 0.12 of its total potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.35 per unit of volatility. If you would invest 4,960 in DoubleLine ETF Trust on November 17, 2025 and sell it today you would earn a total of 108.00 from holding DoubleLine ETF Trust or generate 2.18% 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. DoubleLine ETF Trust
Performance |
| Timeline |
| WisdomTree Emerging |
| DoubleLine ETF Trust |
WisdomTree Emerging and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and DoubleLine ETF
The main advantage of trading using opposite WisdomTree Emerging and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, DoubleLine ETF 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 DoubleLine ETF will offset losses from the drop in DoubleLine ETF's long position.| WisdomTree Emerging vs. Vanguard Emerging Markets | WisdomTree Emerging vs. WisdomTree LargeCap Dividend | WisdomTree Emerging vs. iShares MSCI Taiwan | WisdomTree Emerging vs. Vanguard Ultra Short Bond |
| DoubleLine ETF vs. Strategy Shares | DoubleLine ETF vs. Freedom Day Dividend | DoubleLine ETF vs. iShares MSCI China | DoubleLine ETF vs. SmartETFs Dividend Builder |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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