Correlation Between WisdomTree Europe and IShares Self
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and IShares Self 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 Europe and IShares Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Europe SmallCap and iShares Self Driving EV, you can compare the effects of market volatilities on WisdomTree Europe and IShares Self 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 Europe with a short position of IShares Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and IShares Self.
Diversification Opportunities for WisdomTree Europe and IShares Self
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and IShares is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and iShares Self Driving EV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Self Driving and WisdomTree Europe 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 Europe SmallCap are associated (or correlated) with IShares Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Self Driving has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and IShares Self go up and down completely randomly.
Pair Corralation between WisdomTree Europe and IShares Self
Considering the 90-day investment horizon WisdomTree Europe is expected to generate 89.71 times less return on investment than IShares Self. But when comparing it to its historical volatility, WisdomTree Europe SmallCap is 1.96 times less risky than IShares Self. It trades about 0.0 of its potential returns per unit of risk. iShares Self Driving EV is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,369 in iShares Self Driving EV on July 21, 2025 and sell it today you would earn a total of 327.00 from holding iShares Self Driving EV or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. iShares Self Driving EV
Performance |
| Timeline |
| WisdomTree Europe |
| iShares Self Driving |
WisdomTree Europe and IShares Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and IShares Self
The main advantage of trading using opposite WisdomTree Europe and IShares Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, IShares Self 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 IShares Self will offset losses from the drop in IShares Self's long position.| WisdomTree Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares Currency Hedged |
| IShares Self vs. iShares Currency Hedged | IShares Self vs. iShares MSCI Global | IShares Self vs. iShares MSCI Japan | IShares Self vs. American Century ETF |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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