Correlation Between PGIM ETF and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both PGIM ETF 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 PGIM ETF and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM ETF Trust and WisdomTree Emerging Markets, you can compare the effects of market volatilities on PGIM ETF 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 PGIM ETF with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM ETF and WisdomTree Emerging.
Diversification Opportunities for PGIM ETF and WisdomTree Emerging
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PGIM and WisdomTree is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PGIM ETF Trust and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and PGIM 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 PGIM ETF Trust 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 PGIM ETF i.e., PGIM ETF and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between PGIM ETF and WisdomTree Emerging
Considering the 90-day investment horizon PGIM ETF Trust is expected to generate 1.12 times more return on investment than WisdomTree Emerging. However, PGIM ETF is 1.12 times more volatile than WisdomTree Emerging Markets. It trades about 0.22 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 4,188 in PGIM ETF Trust on September 2, 2025 and sell it today you would earn a total of 117.00 from holding PGIM ETF Trust or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
PGIM ETF Trust vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| PGIM ETF Trust |
| WisdomTree Emerging |
PGIM ETF and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM ETF and WisdomTree Emerging
The main advantage of trading using opposite PGIM ETF and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM ETF 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.| PGIM ETF vs. Valued Advisers Trust | PGIM ETF vs. Columbia Diversified Fixed | PGIM ETF vs. Principal Exchange Traded Funds | PGIM ETF vs. MFS Active Core |
| WisdomTree Emerging vs. BondBloxx ETF Trust | WisdomTree Emerging vs. Virtus ETF Trust | WisdomTree Emerging vs. Vanguard High Yield Active | WisdomTree Emerging vs. Virtus ETF Trust |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |