Correlation Between US Global and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Sea and WisdomTree International Equity, you can compare the effects of market volatilities on US Global 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 US Global with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and WisdomTree International.
Diversification Opportunities for US Global and WisdomTree International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SEA and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding US Global Sea and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and US Global 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 US Global Sea 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 US Global i.e., US Global and WisdomTree International go up and down completely randomly.
Pair Corralation between US Global and WisdomTree International
Considering the 90-day investment horizon US Global Sea is expected to generate 1.35 times more return on investment than WisdomTree International. However, US Global is 1.35 times more volatile than WisdomTree International Equity. It trades about 0.34 of its potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.32 per unit of risk. If you would invest 1,408 in US Global Sea on November 28, 2025 and sell it today you would earn a total of 283.00 from holding US Global Sea or generate 20.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Sea vs. WisdomTree International Equit
Performance |
| Timeline |
| US Global Sea |
| WisdomTree International |
US Global and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and WisdomTree International
The main advantage of trading using opposite US Global and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. John Hancock Exchange Traded | US Global vs. Harbor ETF Trust | US Global vs. Harbor ETF Trust | US Global vs. iShares MSCI Emerging |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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