Correlation Between VanEck Gold and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both VanEck Gold 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 VanEck Gold and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Gold Miners and WisdomTree Emerging Markets, you can compare the effects of market volatilities on VanEck Gold 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 VanEck Gold with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Gold and WisdomTree Emerging.
Diversification Opportunities for VanEck Gold and WisdomTree Emerging
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and WisdomTree is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Gold Miners and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and VanEck Gold 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 VanEck Gold Miners 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 VanEck Gold i.e., VanEck Gold and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between VanEck Gold and WisdomTree Emerging
Assuming the 90 days trading horizon VanEck Gold Miners is expected to generate 3.24 times more return on investment than WisdomTree Emerging. However, VanEck Gold is 3.24 times more volatile than WisdomTree Emerging Markets. It trades about 0.19 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.11 per unit of risk. If you would invest 6,816 in VanEck Gold Miners on November 17, 2025 and sell it today you would earn a total of 2,191 from holding VanEck Gold Miners or generate 32.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Gold Miners vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| VanEck Gold Miners |
| WisdomTree Emerging |
VanEck Gold and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Gold and WisdomTree Emerging
The main advantage of trading using opposite VanEck Gold and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Gold 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.| VanEck Gold vs. VanEck Solana ETN | VanEck Gold vs. VanEck Sustainable World | VanEck Gold vs. VanEck iBoxx EUR | VanEck Gold vs. VanEck Global Fallen |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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