Correlation Between NuShares ETF and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both NuShares ETF and WisdomTree International 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 NuShares ETF and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuShares ETF Trust and WisdomTree International Equity, you can compare the effects of market volatilities on NuShares ETF and WisdomTree International 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 NuShares ETF with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuShares ETF and WisdomTree International.
Diversification Opportunities for NuShares ETF and WisdomTree International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NuShares and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding NuShares ETF Trust and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and NuShares ETF 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 NuShares ETF Trust are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of NuShares ETF i.e., NuShares ETF and WisdomTree International go up and down completely randomly.
Pair Corralation between NuShares ETF and WisdomTree International
Given the investment horizon of 90 days NuShares ETF is expected to generate 1.22 times less return on investment than WisdomTree International. In addition to that, NuShares ETF is 1.18 times more volatile than WisdomTree International Equity. It trades about 0.08 of its total potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.12 per unit of volatility. If you would invest 6,577 in WisdomTree International Equity on September 30, 2025 and sell it today you would earn a total of 321.00 from holding WisdomTree International Equity or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NuShares ETF Trust vs. WisdomTree International Equit
Performance |
| Timeline |
| NuShares ETF Trust |
| WisdomTree International |
NuShares ETF and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuShares ETF and WisdomTree International
The main advantage of trading using opposite NuShares ETF and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuShares ETF position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| NuShares ETF vs. John Hancock Multifactor | NuShares ETF vs. iShares North American | NuShares ETF vs. BNY Mellon Mid | NuShares ETF vs. SPDR SP Capital |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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