Correlation Between WisdomTree MidCap and SPDR Series
Can any of the company-specific risk be diversified away by investing in both WisdomTree MidCap and SPDR Series 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 MidCap and SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree MidCap Dividend and SPDR Series Trust, you can compare the effects of market volatilities on WisdomTree MidCap and SPDR Series 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 MidCap with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree MidCap and SPDR Series.
Diversification Opportunities for WisdomTree MidCap and SPDR Series
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and SPDR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree MidCap Dividend and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and WisdomTree MidCap 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 MidCap Dividend are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of WisdomTree MidCap i.e., WisdomTree MidCap and SPDR Series go up and down completely randomly.
Pair Corralation between WisdomTree MidCap and SPDR Series
Considering the 90-day investment horizon WisdomTree MidCap Dividend is expected to generate 49.02 times more return on investment than SPDR Series. However, WisdomTree MidCap is 49.02 times more volatile than SPDR Series Trust. It trades about 0.14 of its potential returns per unit of risk. SPDR Series Trust is currently generating about 0.99 per unit of risk. If you would invest 5,028 in WisdomTree MidCap Dividend on October 16, 2025 and sell it today you would earn a total of 317.00 from holding WisdomTree MidCap Dividend or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree MidCap Dividend vs. SPDR Series Trust
Performance |
| Timeline |
| WisdomTree MidCap |
| SPDR Series Trust |
WisdomTree MidCap and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree MidCap and SPDR Series
The main advantage of trading using opposite WisdomTree MidCap and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree MidCap position performs unexpectedly, SPDR Series 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 SPDR Series will offset losses from the drop in SPDR Series' long position.| WisdomTree MidCap vs. WisdomTree Emerging Markets | WisdomTree MidCap vs. WisdomTree Japan Hedged | WisdomTree MidCap vs. iShares Financials ETF | WisdomTree MidCap vs. iShares Exponential Technologies |
| SPDR Series vs. iShares Intermediate GovernmentCredit | SPDR Series vs. SPDR EURO STOXX | SPDR Series vs. Columbia ETF Trust | SPDR Series vs. WisdomTree MidCap Dividend |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |