Correlation Between WisdomTree India and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both WisdomTree India and WisdomTree Emerging 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 India and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree India Earnings and WisdomTree Emerging Markets, you can compare the effects of market volatilities on WisdomTree India and WisdomTree Emerging 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 India with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree India and WisdomTree Emerging.
Diversification Opportunities for WisdomTree India and WisdomTree Emerging
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between WisdomTree and WisdomTree is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree India Earnings and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and WisdomTree India 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 India Earnings are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of WisdomTree India i.e., WisdomTree India and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between WisdomTree India and WisdomTree Emerging
Considering the 90-day investment horizon WisdomTree India is expected to generate 3.23 times less return on investment than WisdomTree Emerging. In addition to that, WisdomTree India is 1.62 times more volatile than WisdomTree Emerging Markets. It trades about 0.1 of its total potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.53 per unit of volatility. If you would invest 4,591 in WisdomTree Emerging Markets on October 18, 2025 and sell it today you would earn a total of 232.00 from holding WisdomTree Emerging Markets or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree India Earnings vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| WisdomTree India Earnings |
| WisdomTree Emerging |
WisdomTree India and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree India and WisdomTree Emerging
The main advantage of trading using opposite WisdomTree India and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree India position performs unexpectedly, WisdomTree Emerging 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 Emerging will offset losses from the drop in WisdomTree Emerging's long position.| WisdomTree India vs. iShares MSCI United | WisdomTree India vs. iShares Russell Top | WisdomTree India vs. iShares Dow Jones | WisdomTree India vs. iShares Edge MSCI |
| WisdomTree Emerging vs. WisdomTree MidCap Dividend | WisdomTree Emerging vs. iShares Home Construction | WisdomTree Emerging vs. iShares MSCI All | WisdomTree Emerging vs. WisdomTree India Earnings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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