Correlation Between WisdomTree Efficient and Main International
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and Main International 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 Efficient and Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Efficient Gold and Main International ETF, you can compare the effects of market volatilities on WisdomTree Efficient and Main International 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 Efficient with a short position of Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and Main International.
Diversification Opportunities for WisdomTree Efficient and Main International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and Main is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF and WisdomTree Efficient 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 Efficient Gold are associated (or correlated) with Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and Main International go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and Main International
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 6.47 times more return on investment than Main International. However, WisdomTree Efficient is 6.47 times more volatile than Main International ETF. It trades about 0.18 of its potential returns per unit of risk. Main International ETF is currently generating about 0.28 per unit of risk. If you would invest 8,944 in WisdomTree Efficient Gold on November 29, 2025 and sell it today you would earn a total of 4,738 from holding WisdomTree Efficient Gold or generate 52.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. Main International ETF
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| Main International ETF |
WisdomTree Efficient and Main International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and Main International
The main advantage of trading using opposite WisdomTree Efficient and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.| WisdomTree Efficient vs. VanEck India Growth | WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology |
| Main International vs. LeaderSharesTM AlphaFactor Core | Main International vs. Ultimus Managers Trust | Main International vs. Innovator MSCI Emerging | Main International vs. ProShares Ultra MidCap400 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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