Correlation Between WisdomTree High and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both WisdomTree High and WisdomTree Japan 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 High and WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree High Yield and WisdomTree Japan Hedged, you can compare the effects of market volatilities on WisdomTree High and WisdomTree Japan 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 High with a short position of WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree High and WisdomTree Japan.
Diversification Opportunities for WisdomTree High and WisdomTree Japan
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree High Yield and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged and WisdomTree High 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 High Yield are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of WisdomTree High i.e., WisdomTree High and WisdomTree Japan go up and down completely randomly.
Pair Corralation between WisdomTree High and WisdomTree Japan
Given the investment horizon of 90 days WisdomTree High Yield is expected to under-perform the WisdomTree Japan. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree High Yield is 5.1 times less risky than WisdomTree Japan. The etf trades about -0.01 of its potential returns per unit of risk. The WisdomTree Japan Hedged is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,404 in WisdomTree Japan Hedged on November 8, 2025 and sell it today you would earn a total of 598.00 from holding WisdomTree Japan Hedged or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.16% |
| Values | Daily Returns |
WisdomTree High Yield vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| WisdomTree High Yield |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
WisdomTree High and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree High and WisdomTree Japan
The main advantage of trading using opposite WisdomTree High and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree High position performs unexpectedly, WisdomTree Japan 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 Japan will offset losses from the drop in WisdomTree Japan's long position.| WisdomTree High vs. Doubleline Etf Trust | WisdomTree High vs. ACLC | WisdomTree High vs. Invesco Bloomberg Pricing | WisdomTree High vs. Invesco SP MidCap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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