Correlation Between Affinity World and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Affinity World 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 Affinity World and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity World Leaders and WisdomTree International Multifactor, you can compare the effects of market volatilities on Affinity World 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 Affinity World with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity World and WisdomTree International.
Diversification Opportunities for Affinity World and WisdomTree International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Affinity and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Affinity World Leaders and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Affinity World 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 Affinity World Leaders 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 Affinity World i.e., Affinity World and WisdomTree International go up and down completely randomly.
Pair Corralation between Affinity World and WisdomTree International
Given the investment horizon of 90 days Affinity World Leaders is expected to generate 1.62 times more return on investment than WisdomTree International. However, Affinity World is 1.62 times more volatile than WisdomTree International Multifactor. It trades about 0.35 of its potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.32 per unit of risk. If you would invest 3,288 in Affinity World Leaders on November 21, 2025 and sell it today you would earn a total of 633.00 from holding Affinity World Leaders or generate 19.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affinity World Leaders vs. WisdomTree International Multi
Performance |
| Timeline |
| Affinity World Leaders |
| WisdomTree International |
Affinity World and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity World and WisdomTree International
The main advantage of trading using opposite Affinity World and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity World 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.| Affinity World vs. Xtrackers FTSE Developed | Affinity World vs. Exchange Listed Funds | Affinity World vs. Invesco DWA Basic | Affinity World vs. Tema Cardiovascular and |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |