Correlation Between IPath Series and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both IPath Series 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 IPath Series and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPath Series B and WisdomTree International High, you can compare the effects of market volatilities on IPath Series 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 IPath Series with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPath Series and WisdomTree International.
Diversification Opportunities for IPath Series and WisdomTree International
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPath and WisdomTree is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding iPath Series B and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and IPath Series 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 iPath Series B 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 IPath Series i.e., IPath Series and WisdomTree International go up and down completely randomly.
Pair Corralation between IPath Series and WisdomTree International
Considering the 90-day investment horizon iPath Series B is expected to under-perform the WisdomTree International. In addition to that, IPath Series is 1.49 times more volatile than WisdomTree International High. It trades about -0.13 of its total potential returns per unit of risk. WisdomTree International High is currently generating about 0.3 per unit of volatility. If you would invest 4,962 in WisdomTree International High on November 14, 2025 and sell it today you would earn a total of 662.00 from holding WisdomTree International High or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPath Series B vs. WisdomTree International High
Performance |
| Timeline |
| iPath Series B |
| WisdomTree International |
IPath Series and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPath Series and WisdomTree International
The main advantage of trading using opposite IPath Series and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPath Series 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.| IPath Series vs. Simplify Commodities Strategy | IPath Series vs. NestYield Dynamic Income | IPath Series vs. RiverNorth Active Income | IPath Series vs. Invesco Next Gen |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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