Correlation Between WisdomTree Emerging and PGIM ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and PGIM 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 Emerging and PGIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Emerging Markets and PGIM ETF Trust, you can compare the effects of market volatilities on WisdomTree Emerging and PGIM 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 Emerging with a short position of PGIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and PGIM ETF.
Diversification Opportunities for WisdomTree Emerging and PGIM ETF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and PGIM is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and PGIM ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM ETF Trust and WisdomTree Emerging 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 Emerging Markets are associated (or correlated) with PGIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM ETF Trust has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and PGIM ETF go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and PGIM ETF
Given the investment horizon of 90 days WisdomTree Emerging Markets is expected to generate 0.9 times more return on investment than PGIM ETF. However, WisdomTree Emerging Markets is 1.11 times less risky than PGIM ETF. It trades about 0.18 of its potential returns per unit of risk. PGIM ETF Trust is currently generating about 0.14 per unit of risk. If you would invest 6,547 in WisdomTree Emerging Markets on September 4, 2025 and sell it today you would earn a total of 134.00 from holding WisdomTree Emerging Markets or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. PGIM ETF Trust
Performance |
| Timeline |
| WisdomTree Emerging |
| PGIM ETF Trust |
WisdomTree Emerging and PGIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and PGIM ETF
The main advantage of trading using opposite WisdomTree Emerging and PGIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, PGIM 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 PGIM ETF will offset losses from the drop in PGIM ETF's long position.| WisdomTree Emerging vs. BondBloxx ETF Trust | WisdomTree Emerging vs. Virtus ETF Trust | WisdomTree Emerging vs. Vanguard High Yield Active | WisdomTree Emerging vs. Virtus ETF Trust |
| PGIM ETF vs. Valued Advisers Trust | PGIM ETF vs. Columbia Diversified Fixed | PGIM ETF vs. Principal Exchange Traded Funds | PGIM ETF vs. MFS Active Core |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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