Correlation Between MicroSectors FANG and WisdomTree Emerging
Can company-specific risk be reduced by holding MicroSectors FANG Index and WisdomTree Emerging Markets together? Use this page to interpret how MicroSectors FANG Index and WisdomTree Emerging Markets interact and how much diversifiable risk remains.
This screen helps map correlation drift between MicroSectors FANG Index and WisdomTree Emerging Markets over time, not just at one snapshot. 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
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MicroSectors and WisdomTree is 0.8. 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 14.48 times more return on investment than WisdomTree Emerging. However, MicroSectors FANG is 14.48 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 0.04 per unit of risk. If you had invested $ 5,330 in MicroSectors FANG Index on December 14, 2025 and sold it today you would have earned a total of $ 1,156 from holding MicroSectors FANG Index or generated 21.69% 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
Mild
Weak | Strong |
MicroSectors FANG and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroSectors FANG and WisdomTree Emerging
A paired position in MicroSectors FANG and WisdomTree Emerging is useful when investors want a more relative-value expression than a simple directional trade. The stronger process checks whether the correlation is stable enough to justify the hedge logic before the trade is sized.| 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. Return Stacked Bonds | WisdomTree Emerging vs. Columbia Short Duration | WisdomTree Emerging vs. iShares Inflation Hedged | WisdomTree Emerging vs. NuShares ETF Trust |
Go to your portfolio centerThe information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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