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 Hedged, 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
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rocket and WisdomTree is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged 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 Hedged 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 under-perform the WisdomTree Japan. In addition to that, Rocket Companies is 3.67 times more volatile than WisdomTree Japan Hedged. It trades about -0.05 of its total potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.32 per unit of volatility. If you would invest 4,402 in WisdomTree Japan Hedged on December 3, 2025 and sell it today you would earn a total of 600.00 from holding WisdomTree Japan Hedged or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
Rocket Companies vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Rocket Companies |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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