Correlation Between WisdomTree LargeCap and Harbor ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree LargeCap and Harbor ETF 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 LargeCap and Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree LargeCap Dividend and Harbor ETF Trust, you can compare the effects of market volatilities on WisdomTree LargeCap and Harbor ETF 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 LargeCap with a short position of Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree LargeCap and Harbor ETF.
Diversification Opportunities for WisdomTree LargeCap and Harbor ETF
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Harbor is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree LargeCap Dividend and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust and WisdomTree LargeCap 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 LargeCap Dividend are associated (or correlated) with Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of WisdomTree LargeCap i.e., WisdomTree LargeCap and Harbor ETF go up and down completely randomly.
Pair Corralation between WisdomTree LargeCap and Harbor ETF
Considering the 90-day investment horizon WisdomTree LargeCap is expected to generate 1.32 times less return on investment than Harbor ETF. But when comparing it to its historical volatility, WisdomTree LargeCap Dividend is 1.0 times less risky than Harbor ETF. It trades about 0.09 of its potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,541 in Harbor ETF Trust on September 29, 2025 and sell it today you would earn a total of 103.00 from holding Harbor ETF Trust or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree LargeCap Dividend vs. Harbor ETF Trust
Performance |
| Timeline |
| WisdomTree LargeCap |
| Harbor ETF Trust |
WisdomTree LargeCap and Harbor ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree LargeCap and Harbor ETF
The main advantage of trading using opposite WisdomTree LargeCap and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree LargeCap position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.| WisdomTree LargeCap vs. WisdomTree MidCap Dividend | WisdomTree LargeCap vs. iShares MSCI EAFE | WisdomTree LargeCap vs. iShares ESG Aware | WisdomTree LargeCap vs. iShares MSCI Taiwan |
| Harbor ETF vs. AdvisorShares Vice ETF | Harbor ETF vs. SmartETFs Smart Transportation | Harbor ETF vs. iShares ESG Aware | Harbor ETF vs. Macquarie ETF Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |