Correlation Between SP Funds and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both SP Funds and WisdomTree Emerging 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 SP Funds and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Funds SP and WisdomTree Emerging Markets, you can compare the effects of market volatilities on SP Funds and WisdomTree Emerging 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 SP Funds with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Funds and WisdomTree Emerging.
Diversification Opportunities for SP Funds and WisdomTree Emerging
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPUS and WisdomTree is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SP Funds SP and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and SP Funds 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 SP Funds SP are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of SP Funds i.e., SP Funds and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between SP Funds and WisdomTree Emerging
Given the investment horizon of 90 days SP Funds SP is expected to under-perform the WisdomTree Emerging. In addition to that, SP Funds is 1.25 times more volatile than WisdomTree Emerging Markets. It trades about -0.01 of its total potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.34 per unit of volatility. If you would invest 5,646 in WisdomTree Emerging Markets on December 2, 2025 and sell it today you would earn a total of 837.00 from holding WisdomTree Emerging Markets or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Funds SP vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| SP Funds SP |
| WisdomTree Emerging |
SP Funds and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SP Funds and WisdomTree Emerging
The main advantage of trading using opposite SP Funds and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Funds position performs unexpectedly, WisdomTree Emerging 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 Emerging will offset losses from the drop in WisdomTree Emerging's long position.| SP Funds vs. JPMorgan Momentum Factor | SP Funds vs. Invesco SP 500 | SP Funds vs. iShares Industrials ETF | SP Funds vs. Innovator Defined Wealth |
| WisdomTree Emerging vs. WisdomTree SmallCap Dividend | WisdomTree Emerging vs. Freedom 100 Emerging | WisdomTree Emerging vs. WisdomTree High Dividend | WisdomTree Emerging vs. Invesco FTSE RAFI |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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