Correlation Between WisdomTree Physical and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and SPDR MSCI 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 Physical and SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Physical Gold and SPDR MSCI World, you can compare the effects of market volatilities on WisdomTree Physical and SPDR MSCI 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 Physical with a short position of SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and SPDR MSCI.
Diversification Opportunities for WisdomTree Physical and SPDR MSCI
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and SPDR is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Gold and SPDR MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI World and WisdomTree Physical 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 Physical Gold are associated (or correlated) with SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI World has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and SPDR MSCI go up and down completely randomly.
Pair Corralation between WisdomTree Physical and SPDR MSCI
Assuming the 90 days trading horizon WisdomTree Physical is expected to generate 1.04 times less return on investment than SPDR MSCI. In addition to that, WisdomTree Physical is 1.71 times more volatile than SPDR MSCI World. It trades about 0.18 of its total potential returns per unit of risk. SPDR MSCI World is currently generating about 0.32 per unit of volatility. If you would invest 5,819 in SPDR MSCI World on November 16, 2025 and sell it today you would earn a total of 1,298 from holding SPDR MSCI World or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Gold vs. SPDR MSCI World
Performance |
| Timeline |
| WisdomTree Physical Gold |
| SPDR MSCI World |
WisdomTree Physical and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and SPDR MSCI
The main advantage of trading using opposite WisdomTree Physical and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, SPDR MSCI 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 SPDR MSCI will offset losses from the drop in SPDR MSCI's long position.| WisdomTree Physical vs. iShares Core MSCI | WisdomTree Physical vs. iShares Core MSCI | WisdomTree Physical vs. Vanguard FTSE All World | WisdomTree Physical vs. Vanguard FTSE Developed |
| SPDR MSCI vs. SPDR MSCI World | SPDR MSCI vs. SPDR SP Dividend | SPDR MSCI vs. SPDR SP 500 | SPDR MSCI vs. SPDR BB SB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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