Correlation Between OneAscent Small and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both OneAscent Small 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 OneAscent Small and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneAscent Small Cap and WisdomTree Emerging Markets, you can compare the effects of market volatilities on OneAscent Small 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 OneAscent Small with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneAscent Small and WisdomTree Emerging.
Diversification Opportunities for OneAscent Small and WisdomTree Emerging
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OneAscent and WisdomTree is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent Small Cap and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and OneAscent Small 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 OneAscent Small Cap 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 OneAscent Small i.e., OneAscent Small and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between OneAscent Small and WisdomTree Emerging
Given the investment horizon of 90 days OneAscent Small Cap is expected to generate 2.6 times more return on investment than WisdomTree Emerging. However, OneAscent Small is 2.6 times more volatile than WisdomTree Emerging Markets. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.21 per unit of risk. If you would invest 2,865 in OneAscent Small Cap on November 8, 2025 and sell it today you would earn a total of 235.00 from holding OneAscent Small Cap or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneAscent Small Cap vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| OneAscent Small Cap |
| WisdomTree Emerging |
OneAscent Small and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneAscent Small and WisdomTree Emerging
The main advantage of trading using opposite OneAscent Small and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent Small 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.| OneAscent Small vs. First Trust Horizon | OneAscent Small vs. Innovator ETFs Trust | OneAscent Small vs. VanEck Gaming ETF | OneAscent Small vs. Innovator ETFs Trust |
| WisdomTree Emerging vs. BlackRock High Yield | WisdomTree Emerging vs. Xtrackers MSCI Emerging | WisdomTree Emerging vs. MarketDesk Focused Dividend | WisdomTree Emerging vs. Trust For Professional |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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