Correlation Between Tidal Trust and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both Tidal Trust 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 Tidal Trust and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and WisdomTree Emerging Markets, you can compare the effects of market volatilities on Tidal Trust 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 Tidal Trust with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and WisdomTree Emerging.
Diversification Opportunities for Tidal Trust and WisdomTree Emerging
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tidal and WisdomTree is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and Tidal Trust 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 Tidal Trust II 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 Tidal Trust i.e., Tidal Trust and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between Tidal Trust and WisdomTree Emerging
Considering the 90-day investment horizon Tidal Trust II is expected to generate 16.26 times more return on investment than WisdomTree Emerging. However, Tidal Trust is 16.26 times more volatile than WisdomTree Emerging Markets. It trades about 0.01 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 1,735 in Tidal Trust II on October 18, 2025 and sell it today you would lose (665.00) from holding Tidal Trust II or give up 38.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.1% |
| Values | Daily Returns |
Tidal Trust II vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| Tidal Trust II |
| WisdomTree Emerging |
Tidal Trust and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and WisdomTree Emerging
The main advantage of trading using opposite Tidal Trust and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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.| Tidal Trust vs. Innovator SP 500 | Tidal Trust vs. Pacer Swan SOS | Tidal Trust vs. Innovator Growth 100 Accelerated | Tidal Trust vs. Innovator MSCI Emerging |
| WisdomTree Emerging vs. WisdomTree MidCap Dividend | WisdomTree Emerging vs. iShares Home Construction | WisdomTree Emerging vs. iShares MSCI All | WisdomTree Emerging vs. WisdomTree India Earnings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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