Correlation Between EXT and WisdomTree Europe
Can any of the company-specific risk be diversified away by investing in both EXT and WisdomTree Europe 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 EXT and WisdomTree Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXT and WisdomTree Europe Hedged, you can compare the effects of market volatilities on EXT and WisdomTree Europe 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 EXT with a short position of WisdomTree Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXT and WisdomTree Europe.
Diversification Opportunities for EXT and WisdomTree Europe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EXT and WisdomTree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EXT and WisdomTree Europe Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe Hedged and EXT 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 EXT are associated (or correlated) with WisdomTree Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe Hedged has no effect on the direction of EXT i.e., EXT and WisdomTree Europe go up and down completely randomly.
Pair Corralation between EXT and WisdomTree Europe
If you would invest 4,635 in WisdomTree Europe Hedged on September 27, 2025 and sell it today you would earn a total of 0.00 from holding WisdomTree Europe Hedged or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EXT vs. WisdomTree Europe Hedged
Performance |
| Timeline |
| EXT |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| WisdomTree Europe Hedged |
Risk-Adjusted Performance
Weakest
Weak | Strong |
EXT and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXT and WisdomTree Europe
The main advantage of trading using opposite EXT and WisdomTree Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXT position performs unexpectedly, WisdomTree Europe 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 Europe will offset losses from the drop in WisdomTree Europe's long position.| EXT vs. Morningstar Unconstrained Allocation | EXT vs. Thrivent High Yield | EXT vs. Via Renewables | EXT vs. T Rowe Price |
| WisdomTree Europe vs. iShares MSCI Global | WisdomTree Europe vs. iShares Trust | WisdomTree Europe vs. Knowledge Leaders Developed | WisdomTree Europe vs. Invesco Raymond James |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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