Correlation Between WisdomTree Global and Invesco DWA

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The pairing of WisdomTree Global High and Invesco DWA Emerging highlights how their return series behave together. This measure reflects the degree of diversifiable risk between the two instruments. This metric is based on observed return series over time.
This module compares WisdomTree Global High and Invesco DWA Emerging on return linkage, making pair-trade and hedge decisions easier to frame. This correlation context helps frame relative-value behavior between the pair. You can also test a long WisdomTree Global and short Invesco DWA structure to evaluate relative-value behavior. Volatility patterns for WisdomTree Global and Invesco DWA are available for review. Go to your portfolio center

Diversification Opportunities for WisdomTree Global and Invesco DWA

0.92
  Correlation Coefficient
Minimal diversification benefit
The 3 months correlation between WisdomTree and Invesco is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Global High and Invesco DWA Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DWA Emerging and WisdomTree Global 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 Global High are associated (or correlated) with Invesco DWA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco DWA Emerging has no effect on the direction of WisdomTree Global i.e., WisdomTree Global and Invesco DWA go up and down completely randomly.

Pair Corralation between WisdomTree Global and Invesco DWA

Considering the 90-day investment horizon WisdomTree Global is expected to generate 1.18 times less return on investment than Invesco DWA. But when comparing it to its historical volatility, WisdomTree Global High is 2.26 times less risky than Invesco DWA. It trades about 0.13 of its potential returns per unit of risk. Invesco DWA Emerging is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you had invested $ 2,437 in Invesco DWA Emerging on December 25, 2025 and sold it today you would have earned a total of $ 147.00 from holding Invesco DWA Emerging or generated 6.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.36%
ValuesDaily Returns

WisdomTree Global High  vs.  Invesco DWA Emerging

 Performance 
       Timeline  
WisdomTree Global High 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
WisdomTree Global High currently ranks below 10% of comparable global equities and portfolios when recent risk-adjusted returns are measured across a 90-day horizon. Market capitalization should still be reviewed beside liquidity, leverage, and earnings quality. In spite of fairly stable technical and fundamental indicators, WisdomTree Global is not utilizing all of its potential. The current price fuss may contribute to near-short-term losses for institutional participants. ...more
Invesco DWA Emerging 
Risk-Adjusted Performance
Contained
 
Weak
 
Strong
On a recent 90-day basis, Invesco DWA Emerging sits below 5% of comparable global equities and portfolios in risk-adjusted performance. The main point is that return should be judged together with the volatility required to produce it. In spite of rather unsteady forward indicators, Invesco DWA may actually be approaching a critical reversion point that can send shares even higher in April 2026. ...more

WisdomTree Global and Invesco DWA Volatility Contrast

   Predicted Return Distribution   
       Density  

Pair Trading with WisdomTree Global and Invesco DWA

Pair trading between WisdomTree Global and Invesco DWA can reduce some unsystematic risk by balancing one position against another. This is most useful when the two securities share economic drivers but still create room for relative-performance divergence.
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The 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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