Correlation Between Litman Gregory and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Litman Gregory 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 Litman Gregory and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Litman Gregory Funds and WisdomTree International Multifactor, you can compare the effects of market volatilities on Litman Gregory 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 Litman Gregory with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Litman Gregory and WisdomTree International.
Diversification Opportunities for Litman Gregory and WisdomTree International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Litman and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Litman Gregory Funds and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Litman Gregory 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 Litman Gregory Funds 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 Litman Gregory i.e., Litman Gregory and WisdomTree International go up and down completely randomly.
Pair Corralation between Litman Gregory and WisdomTree International
Given the investment horizon of 90 days Litman Gregory Funds is expected to generate 1.83 times more return on investment than WisdomTree International. However, Litman Gregory is 1.83 times more volatile than WisdomTree International Multifactor. It trades about 0.3 of its potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.35 per unit of risk. If you would invest 1,056 in Litman Gregory Funds on November 20, 2025 and sell it today you would earn a total of 208.00 from holding Litman Gregory Funds or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Litman Gregory Funds vs. WisdomTree International Multi
Performance |
| Timeline |
| Litman Gregory Funds |
| WisdomTree International |
Litman Gregory and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Litman Gregory and WisdomTree International
The main advantage of trading using opposite Litman Gregory and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Litman Gregory 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.| Litman Gregory vs. Pacer Funds Trust | Litman Gregory vs. Matthews China Discovery | Litman Gregory vs. AdvisorShares Hotel ETF | Litman Gregory vs. Spinnaker ETF Series |
| WisdomTree International vs. First Trust Emerging | WisdomTree International vs. First Trust STOXX | WisdomTree International vs. First Trust Small | WisdomTree International vs. John Hancock Multifactor |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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