Correlation Between WisdomTree Emerging and VanEck Preferred
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and VanEck Preferred 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 VanEck Preferred 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 VanEck Preferred Securities, you can compare the effects of market volatilities on WisdomTree Emerging and VanEck Preferred 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 VanEck Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and VanEck Preferred.
Diversification Opportunities for WisdomTree Emerging and VanEck Preferred
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and VanEck is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and VanEck Preferred Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Preferred Sec 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 VanEck Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Preferred Sec has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and VanEck Preferred go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and VanEck Preferred
Given the investment horizon of 90 days WisdomTree Emerging is expected to generate 5.21 times less return on investment than VanEck Preferred. But when comparing it to its historical volatility, WisdomTree Emerging Markets is 2.65 times less risky than VanEck Preferred. It trades about 0.12 of its potential returns per unit of risk. VanEck Preferred Securities is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,699 in VanEck Preferred Securities on November 16, 2025 and sell it today you would earn a total of 144.00 from holding VanEck Preferred Securities or generate 8.48% 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. VanEck Preferred Securities
Performance |
| Timeline |
| WisdomTree Emerging |
| VanEck Preferred Sec |
WisdomTree Emerging and VanEck Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and VanEck Preferred
The main advantage of trading using opposite WisdomTree Emerging and VanEck Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, VanEck Preferred 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 VanEck Preferred will offset losses from the drop in VanEck Preferred's long position.| WisdomTree Emerging vs. Return Stacked Bonds | WisdomTree Emerging vs. Columbia Short Duration | WisdomTree Emerging vs. iShares Inflation Hedged | WisdomTree Emerging vs. NuShares ETF Trust |
| VanEck Preferred vs. First Trust NASDAQ 100 | VanEck Preferred vs. First Trust LongShort | VanEck Preferred vs. VanEck Intermediate Muni | VanEck Preferred vs. Invesco Total Return |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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