Correlation Between SPDR MarketAxess and WisdomTree Japan

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Does pairing SPDR MarketAxess Investment with WisdomTree Japan Hedged lower idiosyncratic risk? This module highlights the diversifiable risk of combining SPDR MarketAxess Investment and WisdomTree Japan Hedged and frames portfolio overlap.
Measure interaction between SPDR MarketAxess Investment and WisdomTree Japan Hedged before allocating capital to both in the same strategy. You can also test a long SPDR MarketAxess and short WisdomTree Japan structure to evaluate relative-value behavior. Review volatility patterns in SPDR MarketAxess and WisdomTree Japan. Go to your portfolio center

Diversification Opportunities for SPDR MarketAxess and WisdomTree Japan

0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between SPDR and WisdomTree is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MarketAxess Investment and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged and SPDR MarketAxess 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 SPDR MarketAxess Investment are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of SPDR MarketAxess i.e., SPDR MarketAxess and WisdomTree Japan go up and down completely randomly.

Pair Corralation between SPDR MarketAxess and WisdomTree Japan

Given the investment horizon of 90 days SPDR MarketAxess is expected to generate 15.79 times less return on investment than WisdomTree Japan. But when comparing it to its historical volatility, SPDR MarketAxess Investment is 5.55 times less risky than WisdomTree Japan. It trades about 0.07 of its potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,555 in WisdomTree Japan Hedged on December 10, 2025 and sell it today you would earn a total of 741.29 from holding WisdomTree Japan Hedged or generate 16.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

SPDR MarketAxess Investment  vs.  WisdomTree Japan Hedged

 Performance 
       Timeline  
SPDR MarketAxess Inv 
Risk-Adjusted Performance
Mild
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on SPDR MarketAxess Investment rank lower than 5% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. Despite nearly stable forward indicators, SPDR MarketAxess is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
WisdomTree Japan Hedged 
Risk-Adjusted Performance
Balanced
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree Japan Hedged rank lower than 15% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. In spite of comparatively uncertain forward-looking indicators, WisdomTree Japan unveiled solid returns over the last few months and may actually be approaching a breakup point.

SPDR MarketAxess and WisdomTree Japan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SPDR MarketAxess and WisdomTree Japan

A paired position in SPDR MarketAxess and WisdomTree Japan 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.
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The 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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