Correlation Between DXC Technology and WisdomTree China
Can any of the company-specific risk be diversified away by investing in both DXC Technology and WisdomTree China 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 DXC Technology and WisdomTree China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and WisdomTree China ex State Owned, you can compare the effects of market volatilities on DXC Technology and WisdomTree China 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 DXC Technology with a short position of WisdomTree China. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and WisdomTree China.
Diversification Opportunities for DXC Technology and WisdomTree China
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and WisdomTree is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and WisdomTree China ex State Owne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree China and DXC Technology 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 DXC Technology Co are associated (or correlated) with WisdomTree China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree China has no effect on the direction of DXC Technology i.e., DXC Technology and WisdomTree China go up and down completely randomly.
Pair Corralation between DXC Technology and WisdomTree China
Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the WisdomTree China. In addition to that, DXC Technology is 2.08 times more volatile than WisdomTree China ex State Owned. It trades about -0.03 of its total potential returns per unit of risk. WisdomTree China ex State Owned is currently generating about 0.28 per unit of volatility. If you would invest 3,303 in WisdomTree China ex State Owned on May 28, 2025 and sell it today you would earn a total of 718.00 from holding WisdomTree China ex State Owned or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. WisdomTree China ex State Owne
Performance |
| Timeline |
| DXC Technology |
| WisdomTree China |
DXC Technology and WisdomTree China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and WisdomTree China
The main advantage of trading using opposite DXC Technology and WisdomTree China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, WisdomTree China 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 WisdomTree China will offset losses from the drop in WisdomTree China's long position.| DXC Technology vs. Gartner | DXC Technology vs. CDW Corp | DXC Technology vs. Cognizant Technology Solutions | DXC Technology vs. Fidelity National Information |
| WisdomTree China vs. Global X MSCI | WisdomTree China vs. WisdomTree Emerging Markets | WisdomTree China vs. Invesco China Technology | WisdomTree China vs. iShares MSCI China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |