Correlation Between Main International and WisdomTree Efficient
Can any of the company-specific risk be diversified away by investing in both Main International and WisdomTree Efficient 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 Efficient 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 Efficient Gold, you can compare the effects of market volatilities on Main International and WisdomTree Efficient 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 Efficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and WisdomTree Efficient.
Diversification Opportunities for Main International and WisdomTree Efficient
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Main and WisdomTree is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and WisdomTree Efficient Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Efficient Gold 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 Efficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Efficient Gold has no effect on the direction of Main International i.e., Main International and WisdomTree Efficient go up and down completely randomly.
Pair Corralation between Main International and WisdomTree Efficient
Given the investment horizon of 90 days Main International is expected to generate 4.31 times less return on investment than WisdomTree Efficient. But when comparing it to its historical volatility, Main International ETF is 6.5 times less risky than WisdomTree Efficient. It trades about 0.27 of its potential returns per unit of risk. WisdomTree Efficient Gold is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,897 in WisdomTree Efficient Gold on November 28, 2025 and sell it today you would earn a total of 4,785 from holding WisdomTree Efficient Gold or generate 53.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main International ETF vs. WisdomTree Efficient Gold
Performance |
| Timeline |
| Main International ETF |
| WisdomTree Efficient Gold |
Main International and WisdomTree Efficient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and WisdomTree Efficient
The main advantage of trading using opposite Main International and WisdomTree Efficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, WisdomTree Efficient 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 Efficient will offset losses from the drop in WisdomTree Efficient'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 |
| WisdomTree Efficient vs. VanEck India Growth | WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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