Correlation Between WisdomTree Siegel and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both WisdomTree Siegel 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 WisdomTree Siegel and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Siegel Moderate and WisdomTree Emerging Markets, you can compare the effects of market volatilities on WisdomTree Siegel 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 WisdomTree Siegel with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Siegel and WisdomTree Emerging.
Diversification Opportunities for WisdomTree Siegel and WisdomTree Emerging
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Siegel Moderate and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and WisdomTree Siegel 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 WisdomTree Siegel Moderate 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 WisdomTree Siegel i.e., WisdomTree Siegel and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between WisdomTree Siegel and WisdomTree Emerging
Assuming the 90 days horizon WisdomTree Siegel Moderate is expected to under-perform the WisdomTree Emerging. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Siegel Moderate is 1.22 times less risky than WisdomTree Emerging. The etf trades about -0.09 of its potential returns per unit of risk. The WisdomTree Emerging Markets is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,199 in WisdomTree Emerging Markets on October 4, 2025 and sell it today you would earn a total of 45.50 from holding WisdomTree Emerging Markets or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Siegel Moderate vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| WisdomTree Siegel |
| WisdomTree Emerging |
WisdomTree Siegel and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Siegel and WisdomTree Emerging
The main advantage of trading using opposite WisdomTree Siegel and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Siegel 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.| WisdomTree Siegel vs. WisdomTree Emerging Markets | WisdomTree Siegel vs. WisdomTree Alternative Income | WisdomTree Siegel vs. WisdomTree High Yield | WisdomTree Siegel vs. WisdomTree SmallCap Quality |
| WisdomTree Emerging vs. iShares MSCI BIC | WisdomTree Emerging vs. iShares International Developed | WisdomTree Emerging vs. SPDR MSCI Emerging | WisdomTree Emerging vs. iShares MSCI Philippines |
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.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |