Correlation Between Dimensional International and WisdomTree International
Does pairing Dimensional International Value with WisdomTree International Equity lower idiosyncratic risk? This module highlights the diversifiable risk of combining Dimensional International Value and WisdomTree International Equity and frames portfolio overlap.
Review Dimensional International Value against WisdomTree International Equity to separate temporary co-movement from persistent structural correlation. You can also test a long Dimensional International and short WisdomTree International structure to evaluate relative-value behavior. Review volatility patterns in Dimensional International and WisdomTree International. Go to your portfolio center
Diversification Opportunities for Dimensional International and WisdomTree International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dimensional and WisdomTree is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International Valu and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Dimensional International 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 Dimensional International Value 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 Dimensional International i.e., Dimensional International and WisdomTree International go up and down completely randomly.
Pair Corralation between Dimensional International and WisdomTree International
Given the investment horizon of 90 days Dimensional International Value is expected to generate 1.07 times more return on investment than WisdomTree International. However, Dimensional International is 1.07 times more volatile than WisdomTree International Equity. It trades about 0.08 of its potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.06 per unit of risk. If you had invested $ 4,949 in Dimensional International Value on December 14, 2025 and sold it today you would have earned a total of $ 213.00 from holding Dimensional International Value or generated 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional International Valu vs. WisdomTree International Equit
Performance |
| Timeline |
| Dimensional International |
Risk-Adjusted Performance
Contained
Weak | Strong |
| WisdomTree International |
Risk-Adjusted Performance
Mild
Weak | Strong |
Dimensional International and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional International and WisdomTree International
Pair trading between Dimensional International and WisdomTree International can reduce some unsystematic risk by balancing one position against another. Used correctly, the structure can help offset losses in one leg when unexpected sector or market pressure hits both names.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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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