Correlation Between WisdomTree Multifactor and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both WisdomTree Multifactor and SPDR Bloomberg 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 WisdomTree Multifactor and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Multifactor and SPDR Bloomberg Short, you can compare the effects of market volatilities on WisdomTree Multifactor and SPDR Bloomberg 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 WisdomTree Multifactor with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Multifactor and SPDR Bloomberg.
Diversification Opportunities for WisdomTree Multifactor and SPDR Bloomberg
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and SPDR is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Multifactor and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short and WisdomTree Multifactor 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 WisdomTree Multifactor are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of WisdomTree Multifactor i.e., WisdomTree Multifactor and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between WisdomTree Multifactor and SPDR Bloomberg
Given the investment horizon of 90 days WisdomTree Multifactor is expected to generate 1.38 times more return on investment than SPDR Bloomberg. However, WisdomTree Multifactor is 1.38 times more volatile than SPDR Bloomberg Short. It trades about 0.2 of its potential returns per unit of risk. SPDR Bloomberg Short is currently generating about 0.23 per unit of risk. If you would invest 5,104 in WisdomTree Multifactor on October 1, 2025 and sell it today you would earn a total of 82.00 from holding WisdomTree Multifactor or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Multifactor vs. SPDR Bloomberg Short
Performance |
| Timeline |
| WisdomTree Multifactor |
| SPDR Bloomberg Short |
WisdomTree Multifactor and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Multifactor and SPDR Bloomberg
The main advantage of trading using opposite WisdomTree Multifactor and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Multifactor position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| WisdomTree Multifactor vs. iShares MSCI Emerging | WisdomTree Multifactor vs. iShares MSCI France | WisdomTree Multifactor vs. iShares Currency Hedged | WisdomTree Multifactor vs. Nuveen ESG Mid Cap |
| SPDR Bloomberg vs. iShares MSCI Emerging | SPDR Bloomberg vs. SPDR FTSE International | SPDR Bloomberg vs. WisdomTree SmallCap Quality | SPDR Bloomberg vs. iShares MSCI Sweden |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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