Correlation Between WisdomTree International and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and WisdomTree Global 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 International and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Hedged and WisdomTree Global ex US, you can compare the effects of market volatilities on WisdomTree International and WisdomTree Global 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 International with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and WisdomTree Global.
Diversification Opportunities for WisdomTree International and WisdomTree Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Hedge and WisdomTree Global ex US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global and WisdomTree International 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 International Hedged are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global has no effect on the direction of WisdomTree International i.e., WisdomTree International and WisdomTree Global go up and down completely randomly.
Pair Corralation between WisdomTree International and WisdomTree Global
Given the investment horizon of 90 days WisdomTree International is expected to generate 1.04 times less return on investment than WisdomTree Global. But when comparing it to its historical volatility, WisdomTree International Hedged is 1.31 times less risky than WisdomTree Global. It trades about 0.25 of its potential returns per unit of risk. WisdomTree Global ex US is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,945 in WisdomTree Global ex US on November 23, 2025 and sell it today you would earn a total of 460.00 from holding WisdomTree Global ex US or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Hedge vs. WisdomTree Global ex US
Performance |
| Timeline |
| WisdomTree International |
| WisdomTree Global |
WisdomTree International and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and WisdomTree Global
The main advantage of trading using opposite WisdomTree International and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, WisdomTree Global 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 Global will offset losses from the drop in WisdomTree Global's long position.| WisdomTree International vs. Pacer Funds Trust | WisdomTree International vs. Swan Hedged Equity | WisdomTree International vs. Goldman Sachs JUST | WisdomTree International vs. Hartford Multifactor Equity |
| WisdomTree Global vs. WisdomTree International High | WisdomTree Global vs. FlexShares Quality Dividend | WisdomTree Global vs. WisdomTree China ex State Owned | WisdomTree Global vs. iShares MSCI Global |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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