Correlation Between Martin Currie and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both Martin Currie and WisdomTree Emerging 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 Martin Currie and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and WisdomTree Emerging Markets, you can compare the effects of market volatilities on Martin Currie and WisdomTree Emerging 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 Martin Currie with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and WisdomTree Emerging.
Diversification Opportunities for Martin Currie and WisdomTree Emerging
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Martin and WisdomTree is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and Martin Currie 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 Martin Currie Sustainable 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 Martin Currie i.e., Martin Currie and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between Martin Currie and WisdomTree Emerging
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the WisdomTree Emerging. In addition to that, Martin Currie is 1.18 times more volatile than WisdomTree Emerging Markets. It trades about -0.01 of its total potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.05 per unit of volatility. If you would invest 3,092 in WisdomTree Emerging Markets on May 31, 2025 and sell it today you would earn a total of 477.00 from holding WisdomTree Emerging Markets or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| Martin Currie Sustainable |
| WisdomTree Emerging |
Martin Currie and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and WisdomTree Emerging
The main advantage of trading using opposite Martin Currie and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, WisdomTree Emerging 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 Emerging will offset losses from the drop in WisdomTree Emerging's long position.| Martin Currie vs. Burney Factor Rotation | Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future |
| WisdomTree Emerging vs. WisdomTree China ex State Owned | WisdomTree Emerging vs. iShares ESG Aware | WisdomTree Emerging vs. SPDR Portfolio Emerging | WisdomTree Emerging vs. WisdomTree International Hedged |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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