Correlation Between Meta Platforms and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Meta Platforms 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 Meta Platforms and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and WisdomTree International Hedged, you can compare the effects of market volatilities on Meta Platforms 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 Meta Platforms with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and WisdomTree International.
Diversification Opportunities for Meta Platforms and WisdomTree International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meta and WisdomTree is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and WisdomTree International Hedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Meta Platforms 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 Meta Platforms 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 Meta Platforms i.e., Meta Platforms and WisdomTree International go up and down completely randomly.
Pair Corralation between Meta Platforms and WisdomTree International
Given the investment horizon of 90 days Meta Platforms is expected to generate 2.81 times more return on investment than WisdomTree International. However, Meta Platforms is 2.81 times more volatile than WisdomTree International Hedged. It trades about 0.09 of its potential returns per unit of risk. WisdomTree International Hedged is currently generating about 0.17 per unit of risk. If you would invest 63,543 in Meta Platforms on November 5, 2025 and sell it today you would earn a total of 7,098 from holding Meta Platforms or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meta Platforms vs. WisdomTree International Hedge
Performance |
| Timeline |
| Meta Platforms |
| WisdomTree International |
Meta Platforms and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and WisdomTree International
The main advantage of trading using opposite Meta Platforms and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms 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.| Meta Platforms vs. Taiwan Semiconductor Manufacturing | Meta Platforms vs. Broadcom | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Oracle |
| WisdomTree International vs. iShares MSCI India | WisdomTree International vs. iShares SP Mid Cap | WisdomTree International vs. iShares MSCI Eurozone | WisdomTree International vs. Dimensional Core Equity |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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