Correlation Between WisdomTree India and Invesco FTSE
Can any of the company-specific risk be diversified away by investing in both WisdomTree India and Invesco FTSE 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 Invesco FTSE 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 Invesco FTSE RAFI, you can compare the effects of market volatilities on WisdomTree India and Invesco FTSE 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 Invesco FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree India and Invesco FTSE.
Diversification Opportunities for WisdomTree India and Invesco FTSE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Invesco is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree India Earnings and Invesco FTSE RAFI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco FTSE RAFI 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 Invesco FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco FTSE RAFI has no effect on the direction of WisdomTree India i.e., WisdomTree India and Invesco FTSE go up and down completely randomly.
Pair Corralation between WisdomTree India and Invesco FTSE
Considering the 90-day investment horizon WisdomTree India is expected to generate 190.86 times less return on investment than Invesco FTSE. But when comparing it to its historical volatility, WisdomTree India Earnings is 1.31 times less risky than Invesco FTSE. It trades about 0.0 of its potential returns per unit of risk. Invesco FTSE RAFI is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,517 in Invesco FTSE RAFI on November 8, 2025 and sell it today you would earn a total of 365.00 from holding Invesco FTSE RAFI or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree India Earnings vs. Invesco FTSE RAFI
Performance |
| Timeline |
| WisdomTree India Earnings |
| Invesco FTSE RAFI |
WisdomTree India and Invesco FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree India and Invesco FTSE
The main advantage of trading using opposite WisdomTree India and Invesco FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree India position performs unexpectedly, Invesco FTSE 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 Invesco FTSE will offset losses from the drop in Invesco FTSE'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 |
| Invesco FTSE vs. Invesco SP 500 | Invesco FTSE vs. iShares MSCI USA | Invesco FTSE vs. Fidelity Enhanced Small | Invesco FTSE vs. Invesco China Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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