Correlation Between Rocket Companies and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Rocket Companies 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 Rocket Companies and WisdomTree International 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 International Multifactor, you can compare the effects of market volatilities on Rocket Companies 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 Rocket Companies with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Companies and WisdomTree International.
Diversification Opportunities for Rocket Companies and WisdomTree International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rocket and WisdomTree is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 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 Rocket Companies i.e., Rocket Companies and WisdomTree International go up and down completely randomly.
Pair Corralation between Rocket Companies and WisdomTree International
Considering the 90-day investment horizon Rocket Companies is expected to generate 6.56 times more return on investment than WisdomTree International. However, Rocket Companies is 6.56 times more volatile than WisdomTree International Multifactor. It trades about 0.06 of its potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.29 per unit of risk. If you would invest 1,697 in Rocket Companies on November 18, 2025 and sell it today you would earn a total of 171.00 from holding Rocket Companies or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Companies vs. WisdomTree International Multi
Performance |
| Timeline |
| Rocket Companies |
| WisdomTree International |
Rocket Companies and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Companies and WisdomTree International
The main advantage of trading using opposite Rocket Companies and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Companies 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.| Rocket Companies vs. Nasdaq Inc | Rocket Companies vs. MSCI Inc | Rocket Companies vs. MetLife | Rocket Companies vs. The Allstate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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