Correlation Between WisdomTree International and WisdomTree Emerging
Can company-specific risk be reduced by holding WisdomTree International Hedged and WisdomTree Emerging Markets together? The view summarizes correlation to explain the diversifiable risk of holding WisdomTree International Hedged and WisdomTree Emerging Markets together.
Measure interaction between WisdomTree International Hedged and WisdomTree Emerging Markets before allocating capital to both in the same strategy. You can also test a long WisdomTree International and short WisdomTree Emerging structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree International and WisdomTree Emerging. Go to your portfolio center
Diversification Opportunities for WisdomTree International and WisdomTree Emerging
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 Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging 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 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 WisdomTree International i.e., WisdomTree International and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between WisdomTree International and WisdomTree Emerging
Given the investment horizon of 90 days WisdomTree International is expected to generate 3.59 times less return on investment than WisdomTree Emerging. But when comparing it to its historical volatility, WisdomTree International Hedged is 1.38 times less risky than WisdomTree Emerging. It trades about 0.04 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you had invested $ 3,862 in WisdomTree Emerging Markets on December 11, 2025 and sold it today you would have earned a total of $ 308.00 from holding WisdomTree Emerging Markets or generated 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Hedge vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| WisdomTree International |
Risk-Adjusted Performance
Mild
Weak | Strong |
| WisdomTree Emerging |
Risk-Adjusted Performance
Moderate
Weak | Strong |
WisdomTree International and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and WisdomTree Emerging
A paired position in WisdomTree International 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.| WisdomTree International vs. WisdomTree Emerging Markets | WisdomTree International vs. iShares MSCI USA | WisdomTree International vs. Amplify Junior Silver | WisdomTree International vs. SPDR SAMPP 400 |
| WisdomTree Emerging vs. SPDR MSCI ACWI | WisdomTree Emerging vs. iShares MSCI Mexico | WisdomTree Emerging vs. WisdomTree International Hedged | WisdomTree Emerging vs. iShares Europe ETF |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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