Correlation Between WisdomTree SmallCap and Invesco Dow
Return co-movement between WisdomTree SmallCap Quality and Invesco Dow Jones captures their degree of alignment. The comparison reflects how diversifiable risk is distributed across the pair. The metric is based on previously observed return patterns.
This page measures how tightly WisdomTree SmallCap Quality and Invesco Dow Jones returns move together and where diversification can still help. This view explains how often the two confirm each other and when they offer offsetting moves. Testing a long WisdomTree SmallCap versus short Invesco Dow position can add context on pair behavior. You can review volatility context in WisdomTree SmallCap and Invesco Dow. Go to your portfolio center
Diversification Opportunities for WisdomTree SmallCap and Invesco Dow
0.92 | Correlation Coefficient |
Almost no diversification
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 SmallCap Quality and Invesco Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Dow Jones and WisdomTree SmallCap 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 SmallCap Quality are associated (or correlated) with Invesco Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Dow Jones has no effect on the direction of WisdomTree SmallCap i.e., WisdomTree SmallCap and Invesco Dow go up and down completely randomly.
Pair Corralation between WisdomTree SmallCap and Invesco Dow
Given the investment horizon of 90 days WisdomTree SmallCap is expected to generate 1.94 times less return on investment than Invesco Dow. In addition to that, WisdomTree SmallCap is 1.54 times more volatile than Invesco Dow Jones. It trades about 0.03 of its total potential returns per unit of risk. Invesco Dow Jones is currently generating about 0.1 per unit of volatility. If you had invested $ 5,708 in Invesco Dow Jones on December 21, 2025 and sold it today you would have earned a total of $ 227.00 from holding Invesco Dow Jones or generated 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree SmallCap Quality vs. Invesco Dow Jones
Performance |
| Timeline |
| WisdomTree SmallCap |
Risk-Adjusted Performance
Soft
Weak | Strong |
| Invesco Dow Jones |
Risk-Adjusted Performance
Moderate
Weak | Strong |
WisdomTree SmallCap and Invesco Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree SmallCap and Invesco Dow
Two-leg strategies using WisdomTree SmallCap and Invesco Dow matter because the combined position can be designed to be more market-neutral. The stronger process checks whether the correlation is stable enough to justify the hedge logic before the trade is sized.| WisdomTree SmallCap vs. WisdomTree Japan SmallCap | WisdomTree SmallCap vs. iShares MSCI Sweden | WisdomTree SmallCap vs. iShares MSCI Emerging | WisdomTree SmallCap vs. JPMorgan Diversified Return |
| Invesco Dow vs. VictoryShares Large Cap | Invesco Dow vs. JPMorgan Diversified Return | Invesco Dow vs. Goldman Sachs ETF | Invesco Dow vs. WisdomTree SmallCap Quality |
Go to your portfolio centerThe analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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