Correlation Between IShares ESG and WisdomTree Yield
Can any of the company-specific risk be diversified away by investing in both IShares ESG and WisdomTree Yield 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 IShares ESG and WisdomTree Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG Aggregate and WisdomTree Yield Enhanced, you can compare the effects of market volatilities on IShares ESG and WisdomTree Yield 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 IShares ESG with a short position of WisdomTree Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and WisdomTree Yield.
Diversification Opportunities for IShares ESG and WisdomTree Yield
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and WisdomTree is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aggregate and WisdomTree Yield Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Yield Enhanced and IShares ESG 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 iShares ESG Aggregate are associated (or correlated) with WisdomTree Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Yield Enhanced has no effect on the direction of IShares ESG i.e., IShares ESG and WisdomTree Yield go up and down completely randomly.
Pair Corralation between IShares ESG and WisdomTree Yield
Given the investment horizon of 90 days iShares ESG Aggregate is expected to generate 0.88 times more return on investment than WisdomTree Yield. However, iShares ESG Aggregate is 1.13 times less risky than WisdomTree Yield. It trades about 0.16 of its potential returns per unit of risk. WisdomTree Yield Enhanced is currently generating about 0.14 per unit of risk. If you would invest 4,688 in iShares ESG Aggregate on August 17, 2025 and sell it today you would earn a total of 102.00 from holding iShares ESG Aggregate or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares ESG Aggregate vs. WisdomTree Yield Enhanced
Performance |
| Timeline |
| iShares ESG Aggregate |
| WisdomTree Yield Enhanced |
IShares ESG and WisdomTree Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and WisdomTree Yield
The main advantage of trading using opposite IShares ESG and WisdomTree Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG position performs unexpectedly, WisdomTree Yield 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 Yield will offset losses from the drop in WisdomTree Yield's long position.| IShares ESG vs. iShares Medical Devices | IShares ESG vs. iShares Financials ETF | IShares ESG vs. Fidelity Advisor Semiconductors | IShares ESG vs. Invesco BulletShares 2026 |
| WisdomTree Yield vs. WisdomTree Yield Enhanced | WisdomTree Yield vs. SPDR Barclays Long | WisdomTree Yield vs. Vanguard Global Credit | WisdomTree Yield vs. JPMorgan Inflation Managed |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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