Correlation Between WisdomTree Emerging and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and WisdomTree Global 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 WisdomTree Global 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 WisdomTree Global High, you can compare the effects of market volatilities on WisdomTree Emerging and WisdomTree Global 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 WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and WisdomTree Global.
Diversification Opportunities for WisdomTree Emerging and WisdomTree Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and WisdomTree Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global High 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 WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global High has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and WisdomTree Global go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and WisdomTree Global
Given the investment horizon of 90 days WisdomTree Emerging is expected to generate 1.48 times less return on investment than WisdomTree Global. In addition to that, WisdomTree Emerging is 1.84 times more volatile than WisdomTree Global High. It trades about 0.14 of its total potential returns per unit of risk. WisdomTree Global High is currently generating about 0.39 per unit of volatility. If you would invest 6,080 in WisdomTree Global High on December 4, 2025 and sell it today you would earn a total of 809.00 from holding WisdomTree Global High or generate 13.31% 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. WisdomTree Global High
Performance |
| Timeline |
| WisdomTree Emerging |
| WisdomTree Global High |
WisdomTree Emerging and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and WisdomTree Global
The main advantage of trading using opposite WisdomTree Emerging and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, WisdomTree Global 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 WisdomTree Global will offset losses from the drop in WisdomTree Global's long position.| WisdomTree Emerging vs. WisdomTree Emerging Markets | WisdomTree Emerging vs. Goldman Sachs MarketBeta | WisdomTree Emerging vs. First Trust RiverFront | WisdomTree Emerging vs. EA Series Trust |
| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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