Correlation Between Main International and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Main International and WisdomTree 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 Main International and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main International ETF and WisdomTree International MidCap, you can compare the effects of market volatilities on Main International and WisdomTree 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 Main International with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and WisdomTree International.
Diversification Opportunities for Main International and WisdomTree International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Main and WisdomTree is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and WisdomTree International MidCa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Main 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 Main International ETF are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Main International i.e., Main International and WisdomTree International go up and down completely randomly.
Pair Corralation between Main International and WisdomTree International
Given the investment horizon of 90 days Main International is expected to generate 1.1 times less return on investment than WisdomTree International. But when comparing it to its historical volatility, Main International ETF is 1.16 times less risky than WisdomTree International. It trades about 0.26 of its potential returns per unit of risk. WisdomTree International MidCap is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 7,836 in WisdomTree International MidCap on September 30, 2025 and sell it today you would earn a total of 205.00 from holding WisdomTree International MidCap or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main International ETF vs. WisdomTree International MidCa
Performance |
| Timeline |
| Main International ETF |
| WisdomTree International |
Main International and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and WisdomTree International
The main advantage of trading using opposite Main International and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, WisdomTree 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world |