Correlation Between IShares Industrials and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both IShares Industrials and WisdomTree Global 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 IShares Industrials and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Industrials ETF and WisdomTree Global ex US, you can compare the effects of market volatilities on IShares Industrials and WisdomTree Global 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 IShares Industrials with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Industrials and WisdomTree Global.
Diversification Opportunities for IShares Industrials and WisdomTree Global
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and WisdomTree is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iShares Industrials ETF 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 IShares Industrials 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 iShares Industrials ETF 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 IShares Industrials i.e., IShares Industrials and WisdomTree Global go up and down completely randomly.
Pair Corralation between IShares Industrials and WisdomTree Global
Considering the 90-day investment horizon iShares Industrials ETF is expected to generate 0.97 times more return on investment than WisdomTree Global. However, iShares Industrials ETF is 1.03 times less risky than WisdomTree Global. It trades about 0.08 of its potential returns per unit of risk. WisdomTree Global ex US is currently generating about 0.07 per unit of risk. If you would invest 14,435 in iShares Industrials ETF on September 26, 2025 and sell it today you would earn a total of 635.00 from holding iShares Industrials ETF or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
iShares Industrials ETF vs. WisdomTree Global ex US
Performance |
| Timeline |
| iShares Industrials ETF |
| WisdomTree Global |
IShares Industrials and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Industrials and WisdomTree Global
The main advantage of trading using opposite IShares Industrials and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Industrials position performs unexpectedly, WisdomTree Global 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 WisdomTree Global will offset losses from the drop in WisdomTree Global's long position.| IShares Industrials vs. Global X Uranium | IShares Industrials vs. iShares MSCI KLD | IShares Industrials vs. Schwab International Small Cap | IShares Industrials vs. ProShares UltraPro SP500 |
| WisdomTree Global vs. WisdomTree International High | WisdomTree Global vs. iShares Global Comm | WisdomTree Global vs. FlexShares Quality Dividend | WisdomTree Global vs. WisdomTree China ex State Owned |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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