Correlation Between WisdomTree Emerging and EA Series
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging and EA 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 Emerging and EA Series 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 EA Series Trust, you can compare the effects of market volatilities on WisdomTree Emerging and EA 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 Emerging with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and EA Series.
Diversification Opportunities for WisdomTree Emerging and EA Series
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WisdomTree and ECML is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and EA Series go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and EA Series
Given the investment horizon of 90 days WisdomTree Emerging Markets is expected to generate 0.89 times more return on investment than EA Series. However, WisdomTree Emerging Markets is 1.13 times less risky than EA Series. It trades about 0.07 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.04 per unit of risk. If you would invest 3,065 in WisdomTree Emerging Markets on October 2, 2025 and sell it today you would earn a total of 104.00 from holding WisdomTree Emerging Markets or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. EA Series Trust
Performance |
| Timeline |
| WisdomTree Emerging |
| EA Series Trust |
WisdomTree Emerging and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and EA Series
The main advantage of trading using opposite WisdomTree Emerging and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging position performs unexpectedly, EA 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 EA Series will offset losses from the drop in EA Series' long position.| WisdomTree Emerging vs. WisdomTree Emerging Markets | WisdomTree Emerging vs. Goldman Sachs MarketBeta | WisdomTree Emerging vs. First Trust RiverFront | WisdomTree Emerging vs. EA Series Trust |
| EA Series vs. WisdomTree Emerging Markets | EA Series vs. First Trust Small | EA Series vs. First Trust RiverFront | EA Series vs. First Trust Multi |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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