Correlation Between WisdomTree International and SPDR EURO

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Does pairing WisdomTree International MidCap with SPDR EURO STOXX lower idiosyncratic risk? This module highlights the diversifiable risk of combining WisdomTree International MidCap and SPDR EURO STOXX and frames portfolio overlap.
Cross-correlation between WisdomTree International MidCap and SPDR EURO STOXX helps estimate portfolio overlap before combining both positions. You can also test a long WisdomTree International and short SPDR EURO structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree International and SPDR EURO. Go to your portfolio center

Diversification Opportunities for WisdomTree International and SPDR EURO

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between WisdomTree and SPDR is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International MidCa and SPDR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR EURO STOXX and WisdomTree 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 WisdomTree International MidCap are associated (or correlated) with SPDR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR EURO STOXX has no effect on the direction of WisdomTree International i.e., WisdomTree International and SPDR EURO go up and down completely randomly.

Pair Corralation between WisdomTree International and SPDR EURO

Considering the 90-day investment horizon WisdomTree International MidCap is expected to generate 0.78 times more return on investment than SPDR EURO. However, WisdomTree International MidCap is 1.28 times less risky than SPDR EURO. It trades about 0.12 of its potential returns per unit of risk. SPDR EURO STOXX is currently generating about -0.01 per unit of risk. If you had invested $ 7,944 in WisdomTree International MidCap on December 11, 2025 and sold it today you would have earned a total of $ 471.00 from holding WisdomTree International MidCap or generated 5.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

WisdomTree International MidCa  vs.  SPDR EURO STOXX

 Performance 
       Timeline  
WisdomTree International 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree International MidCap rank lower than 9% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. In spite of very healthy forward indicators, WisdomTree International is not utilizing all of its potential. The latest price disarray may contribute to short-term losses for investors. ...more
SPDR EURO STOXX 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, SPDR EURO STOXX generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. Despite somewhat strong technical and fundamental indicators, SPDR EURO is not utilizing all of its potential. The newest price disturbance may contribute to short-term losses for investors. ...more

WisdomTree International and SPDR EURO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree International and SPDR EURO

Pair trading between WisdomTree International and SPDR EURO 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.
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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