Correlation Between Vanguard Ultra and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Vanguard Ultra 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 Vanguard Ultra and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Ultra Short Bond and WisdomTree International SmallCap, you can compare the effects of market volatilities on Vanguard Ultra 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 Vanguard Ultra with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Ultra and WisdomTree International.
Diversification Opportunities for Vanguard Ultra and WisdomTree International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Ultra Short Bond and WisdomTree International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Vanguard Ultra 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 Vanguard Ultra Short Bond 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 Vanguard Ultra i.e., Vanguard Ultra and WisdomTree International go up and down completely randomly.
Pair Corralation between Vanguard Ultra and WisdomTree International
Given the investment horizon of 90 days Vanguard Ultra is expected to generate 8.38 times less return on investment than WisdomTree International. But when comparing it to its historical volatility, Vanguard Ultra Short Bond is 21.81 times less risky than WisdomTree International. It trades about 0.6 of its potential returns per unit of risk. WisdomTree International SmallCap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 7,740 in WisdomTree International SmallCap on November 8, 2025 and sell it today you would earn a total of 743.00 from holding WisdomTree International SmallCap or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Ultra Short Bond vs. WisdomTree International Small
Performance |
| Timeline |
| Vanguard Ultra Short |
| WisdomTree International |
Vanguard Ultra and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Ultra and WisdomTree International
The main advantage of trading using opposite Vanguard Ultra and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Ultra 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.| Vanguard Ultra vs. iShares Morningstar Equity | Vanguard Ultra vs. Barloworld Ltd ADR | Vanguard Ultra vs. Morningstar Unconstrained Allocation | Vanguard Ultra vs. High Yield Municipal Fund |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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