Correlation Between SPDR Portfolio and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio 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 SPDR Portfolio and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio TIPS and WisdomTree International SmallCap, you can compare the effects of market volatilities on SPDR Portfolio 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 SPDR Portfolio with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and WisdomTree International.
Diversification Opportunities for SPDR Portfolio and WisdomTree International
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and WisdomTree is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio TIPS and WisdomTree International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and SPDR Portfolio 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 SPDR Portfolio TIPS 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 SPDR Portfolio i.e., SPDR Portfolio and WisdomTree International go up and down completely randomly.
Pair Corralation between SPDR Portfolio and WisdomTree International
Given the investment horizon of 90 days SPDR Portfolio TIPS is expected to under-perform the WisdomTree International. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Portfolio TIPS is 3.5 times less risky than WisdomTree International. The etf trades about -0.02 of its potential returns per unit of risk. The WisdomTree International SmallCap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,766 in WisdomTree International SmallCap on September 30, 2025 and sell it today you would earn a total of 319.00 from holding WisdomTree International SmallCap or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio TIPS vs. WisdomTree International Small
Performance |
| Timeline |
| SPDR Portfolio TIPS |
| WisdomTree International |
SPDR Portfolio and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and WisdomTree International
The main advantage of trading using opposite SPDR Portfolio and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio 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.| SPDR Portfolio vs. FlexShares iBoxx 5 Year | SPDR Portfolio vs. iShares Micro Cap ETF | SPDR Portfolio vs. WisdomTree International SmallCap | SPDR Portfolio vs. iShares Energy ETF |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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