Correlation Between Tema Global and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both Tema Global 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 Tema Global and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema Global and WisdomTree Emerging Markets, you can compare the effects of market volatilities on Tema Global 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 Tema Global with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema Global and WisdomTree Emerging.
Diversification Opportunities for Tema Global and WisdomTree Emerging
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tema and WisdomTree is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tema Global and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and Tema Global 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 Tema Global 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 Tema Global i.e., Tema Global and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between Tema Global and WisdomTree Emerging
If you would invest 5,639 in WisdomTree Emerging Markets on November 29, 2025 and sell it today you would earn a total of 844.00 from holding WisdomTree Emerging Markets or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 3.28% |
| Values | Daily Returns |
Tema Global vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| Tema Global |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| WisdomTree Emerging |
Tema Global and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema Global and WisdomTree Emerging
The main advantage of trading using opposite Tema Global and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema Global 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.The idea behind Tema Global and WisdomTree Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WisdomTree Emerging vs. WisdomTree SmallCap Dividend | WisdomTree Emerging vs. Freedom 100 Emerging | WisdomTree Emerging vs. WisdomTree High Dividend | WisdomTree Emerging vs. Invesco FTSE RAFI |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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