Correlation Between Invesco EQQQ and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both Invesco EQQQ 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 Invesco EQQQ and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco EQQQ NASDAQ 100 and WisdomTree Emerging Markets, you can compare the effects of market volatilities on Invesco EQQQ 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 Invesco EQQQ with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco EQQQ and WisdomTree Emerging.
Diversification Opportunities for Invesco EQQQ and WisdomTree Emerging
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and WisdomTree is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Invesco EQQQ NASDAQ 100 and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and Invesco EQQQ 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 Invesco EQQQ NASDAQ 100 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 Invesco EQQQ i.e., Invesco EQQQ and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between Invesco EQQQ and WisdomTree Emerging
Assuming the 90 days trading horizon Invesco EQQQ NASDAQ 100 is expected to under-perform the WisdomTree Emerging. In addition to that, Invesco EQQQ is 1.17 times more volatile than WisdomTree Emerging Markets. It trades about -0.01 of its total potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.11 per unit of volatility. If you would invest 1,306 in WisdomTree Emerging Markets on November 17, 2025 and sell it today you would earn a total of 70.00 from holding WisdomTree Emerging Markets or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco EQQQ NASDAQ 100 vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| Invesco EQQQ NASDAQ |
| WisdomTree Emerging |
Invesco EQQQ and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco EQQQ and WisdomTree Emerging
The main advantage of trading using opposite Invesco EQQQ and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco EQQQ 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.| Invesco EQQQ vs. iShares NASDAQ 100 | Invesco EQQQ vs. Invesco EQQQ NASDAQ 100 | Invesco EQQQ vs. iShares Edge MSCI | Invesco EQQQ vs. UBSETF MSCIWLD USDa |
| WisdomTree Emerging vs. iShares MSCI USA | WisdomTree Emerging vs. Invesco EQQQ NASDAQ 100 | WisdomTree Emerging vs. iShares VII PLC | WisdomTree Emerging vs. iShares MSCI North |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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