Correlation Between MicroSectors FANG and WisdomTree Emerging
Can company-specific risk be reduced by holding MicroSectors FANG Index and WisdomTree Emerging Markets together? This analysis describes return linkage and the diversifiable risk of a joint position in MicroSectors FANG Index and WisdomTree Emerging Markets.
This reference page shows whether MicroSectors FANG Index and WisdomTree Emerging Markets provide true diversification or mostly duplicate risk. You can also test a long MicroSectors FANG and short WisdomTree Emerging structure to evaluate relative-value behavior. Review volatility patterns in MicroSectors FANG and WisdomTree Emerging. Go to your portfolio center
Diversification Opportunities for MicroSectors FANG and WisdomTree Emerging
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MicroSectors and WisdomTree is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MicroSectors FANG Index and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and MicroSectors FANG 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 MicroSectors FANG Index are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of MicroSectors FANG i.e., MicroSectors FANG and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between MicroSectors FANG and WisdomTree Emerging
Given the investment horizon of 90 days MicroSectors FANG Index is expected to generate 3.82 times more return on investment than WisdomTree Emerging. However, MicroSectors FANG is 3.82 times more volatile than WisdomTree Emerging Markets. It trades about 0.11 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.11 per unit of risk. If you had invested $ 5,360 in MicroSectors FANG Index on December 18, 2025 and sold it today you would have earned a total of $ 1,144 from holding MicroSectors FANG Index or generated 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MicroSectors FANG Index vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| MicroSectors FANG Index |
Risk-Adjusted Performance
Moderate
Weak | Strong |
| WisdomTree Emerging |
Risk-Adjusted Performance
Moderate
Weak | Strong |
MicroSectors FANG and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroSectors FANG and WisdomTree Emerging
Two-leg strategies using MicroSectors FANG and WisdomTree Emerging 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.| MicroSectors FANG vs. Capital Group Core | MicroSectors FANG vs. iShares Core Growth | MicroSectors FANG vs. iShares Dow Jones | MicroSectors FANG vs. iShares Russell Top |
| WisdomTree Emerging vs. WisdomTree MidCap Dividend | WisdomTree Emerging vs. iShares Home Construction | WisdomTree Emerging vs. iShares MSCI All | WisdomTree Emerging vs. WisdomTree India Earnings |
Go to your portfolio centerThe 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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