Correlation Between Exchange Traded and WisdomTree Japan
The pairing of Exchange Traded Concepts and WisdomTree Japan Hedged highlights how their return series behave together. This framework highlights how diversifiable risk is affected when both are included. This value is computed from recorded return data over multiple periods.
This module compares Exchange Traded Concepts and WisdomTree Japan Hedged on return linkage, making pair-trade and hedge decisions easier to frame. The output helps evaluate whether combining the two amplifies or reduces concentration risk. Testing a directional pair using long Exchange Traded and short WisdomTree Japan can provide additional context. Go to your portfolio center
Diversification Opportunities for Exchange Traded and WisdomTree Japan
0.93 | Correlation Coefficient |
Minimal diversification benefit
The 3 months correlation between Exchange and WisdomTree is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts 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 Exchange Traded 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 Exchange Traded Concepts 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 Exchange Traded i.e., Exchange Traded and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Exchange Traded and WisdomTree Japan
Given the investment horizon of 90 days Exchange Traded is expected to generate 7.98 times less return on investment than WisdomTree Japan. But when comparing it to its historical volatility, Exchange Traded Concepts is 5.07 times less risky than WisdomTree Japan. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you had invested $ 14,363 in WisdomTree Japan Hedged on December 26, 2025 and sold it today you would have earned a total of $ 1,569 from holding WisdomTree Japan Hedged or generated 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Traded Concepts vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Exchange Traded Concepts |
Risk-Adjusted Performance
Contained
Weak | Strong |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Moderate
Weak | Strong |
Exchange Traded and WisdomTree Japan Volatility Contrast
Predicted Return Distribution |
| Density |
Pair Trading with Exchange Traded and WisdomTree Japan
Combining Exchange Traded with WisdomTree Japan in a pair setup can help isolate spread behavior from broader market movement. The objective is to profit from relative movement while reducing dependence on the market's overall direction.| Exchange Traded vs. Pacer American Energy | Exchange Traded vs. Global X Funds | Exchange Traded vs. RiverFront Dynamic Dividend | Exchange Traded vs. Pacer Cash Cows |
| WisdomTree Japan vs. Pacer Small Cap | WisdomTree Japan vs. WisdomTree MidCap Dividend | WisdomTree Japan vs. iShares Financials ETF | WisdomTree Japan vs. SPDR SAMPP 600 |
Go to your portfolio centerThe information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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