Correlation Between WisdomTree Japan and Simplify Interest

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Observing WisdomTree Japan Hedged alongside Simplify Interest Rate reveals patterns in their return co-movement. The interaction provides insight into how diversifiable risk is represented. The metric is based on previously observed return patterns. No forward-looking guarantees are expressed or implied by this data.
Correlation analysis of WisdomTree Japan Hedged and Simplify Interest Rate can improve hedge quality and reduce accidental factor exposure. The output helps evaluate whether combining the two amplifies or reduces concentration risk. Go to your portfolio center

Diversification Opportunities for WisdomTree Japan and Simplify Interest

-0.82
  Correlation Coefficient
Pay attention - limited upside
The 3 months correlation between WisdomTree and Simplify is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and Simplify Interest Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Interest Rate and WisdomTree Japan 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 Japan Hedged are associated (or correlated) with Simplify Interest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Interest Rate has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and Simplify Interest go up and down completely randomly.

Pair Corralation between WisdomTree Japan and Simplify Interest

Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 0.67 times more return on investment than Simplify Interest. However, WisdomTree Japan Hedged is 1.49 times less risky than Simplify Interest. It trades about 0.13 of its potential returns per unit of risk. Simplify Interest Rate is currently generating about -0.05 per unit of risk. If you had invested $ 14,370 in WisdomTree Japan Hedged on December 20, 2025 and sold it today you would have earned a total of $ 1,410 from holding WisdomTree Japan Hedged or generated 9.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

WisdomTree Japan Hedged  vs.  Simplify Interest Rate

 Performance 
       Timeline  
WisdomTree Japan Hedged 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
WisdomTree Japan Hedged currently ranks below 10% of comparable global equities and portfolios when recent risk-adjusted returns are measured across a 90-day horizon. The main point is that return should be judged together with the volatility required to produce it. Even with relatively weak basic indicators, WisdomTree Japan may actually be approaching a critical reversion point that can send shares even higher in April 2026. ...more
Simplify Interest Rate 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Simplify Interest Rate has delivered negative risk-adjusted returns across the last 90 days, suggesting that volatility was not compensated by return. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. Despite somewhat strong forward indicators, Simplify Interest is not utilizing all of its potential. The recent price disturbance may contribute to short-term losses for investors. ...more

WisdomTree Japan and Simplify Interest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Japan and Simplify Interest

Two-leg strategies using WisdomTree Japan and Simplify Interest matter because the combined position can be designed to be more market-neutral. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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