Correlation Between WisdomTree International and WisdomTree Global

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The pairing of WisdomTree International Hedged and WisdomTree Global ex US highlights how their return series behave together. This measure reflects the degree of diversifiable risk between the two instruments.
This module compares WisdomTree International Hedged and WisdomTree Global ex US on return linkage, making pair-trade and hedge decisions easier to frame. The comparison frames co-movement across different time windows and market conditions. Testing a directional pair using long WisdomTree International and short WisdomTree Global can provide additional context. For volatility context, review WisdomTree International and WisdomTree Global. Go to your portfolio center

Diversification Opportunities for WisdomTree International and WisdomTree Global

0.93
  Correlation Coefficient
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Hedge and WisdomTree Global ex US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global and WisdomTree International 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 International Hedged are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global has no effect on the direction of WisdomTree International i.e., WisdomTree International and WisdomTree Global go up and down completely randomly.

Pair Corralation between WisdomTree International and WisdomTree Global

Given the investment horizon of 90 days WisdomTree International Hedged is expected to under-perform the WisdomTree Global. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree International Hedged is 1.34 times less risky than WisdomTree Global. The etf trades about -0.07 of its potential returns per unit of risk. The WisdomTree Global ex US is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you had invested $ 4,109 in WisdomTree Global ex US on December 22, 2025 and sold it today you would have lost $ 172.00 from holding WisdomTree Global ex US or given up 4.19% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

WisdomTree International Hedge  vs.  WisdomTree Global ex US

 Performance 
       Timeline  
WisdomTree International 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
For the recent 90-day horizon, WisdomTree International Hedged failed to convert risk into positive risk-adjusted performance. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. Despite nearly stable fundamental indicators, WisdomTree International is not utilizing all of its potential. The latest price disturbance may contribute to mid-run losses for stockholders. ...more
WisdomTree Global 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
WisdomTree Global ex US has delivered negative risk-adjusted returns across the last 90 days, suggesting that volatility was not compensated by return. The current category mapping is Foreign Large Growth. Despite quite persistent basic indicators, WisdomTree Global is not utilizing all of its potential. The recent price mess may contribute to short-term losses for institutional investors. ...more

WisdomTree International and WisdomTree Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree International and WisdomTree Global

Pair trading between WisdomTree International and WisdomTree Global can reduce some unsystematic risk by balancing one position against another. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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