Correlation Between Rocket Companies and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Rocket Companies and WisdomTree Japan 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 Rocket Companies and WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket Companies and WisdomTree Japan SmallCap, you can compare the effects of market volatilities on Rocket Companies and WisdomTree Japan 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 Rocket Companies with a short position of WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Companies and WisdomTree Japan.
Diversification Opportunities for Rocket Companies and WisdomTree Japan
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rocket and WisdomTree is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and WisdomTree Japan SmallCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan SmallCap and Rocket Companies 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 Rocket Companies are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan SmallCap has no effect on the direction of Rocket Companies i.e., Rocket Companies and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Rocket Companies and WisdomTree Japan
Considering the 90-day investment horizon Rocket Companies is expected to generate 1.48 times less return on investment than WisdomTree Japan. In addition to that, Rocket Companies is 4.22 times more volatile than WisdomTree Japan SmallCap. It trades about 0.06 of its total potential returns per unit of risk. WisdomTree Japan SmallCap is currently generating about 0.37 per unit of volatility. If you would invest 9,016 in WisdomTree Japan SmallCap on November 18, 2025 and sell it today you would earn a total of 2,069 from holding WisdomTree Japan SmallCap or generate 22.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Companies vs. WisdomTree Japan SmallCap
Performance |
| Timeline |
| Rocket Companies |
| WisdomTree Japan SmallCap |
Rocket Companies and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Companies and WisdomTree Japan
The main advantage of trading using opposite Rocket Companies and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Companies position performs unexpectedly, WisdomTree Japan 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 Japan will offset losses from the drop in WisdomTree Japan's long position.| Rocket Companies vs. Nasdaq Inc | Rocket Companies vs. MSCI Inc | Rocket Companies vs. MetLife | Rocket Companies vs. The Allstate |
| WisdomTree Japan vs. WisdomTree SmallCap Quality | WisdomTree Japan vs. iShares MSCI Indonesia | WisdomTree Japan vs. WisdomTree Cloud Computing | WisdomTree Japan vs. Davis Select Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |