Correlation Between Invesco DWA and WisdomTree International

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The pairing of Invesco DWA Developed and WisdomTree International Hedged highlights how their return series behave together. This measure reflects the degree of diversifiable risk between the two instruments. This metric is based on observed return series over time. The information is presented without directional commentary.
This correlation view highlights where Invesco DWA Developed and WisdomTree International Hedged move in sync and where they separate across market regimes. The data shows how directional alignment between the two changes over time. Go to your portfolio center

Diversification Opportunities for Invesco DWA and WisdomTree International

0.87
  Correlation Coefficient
Very poor diversification
The 3 months correlation between Invesco and WisdomTree is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Developed and WisdomTree International Hedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Invesco DWA 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 Invesco DWA Developed 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 Invesco DWA i.e., Invesco DWA and WisdomTree International go up and down completely randomly.

Pair Corralation between Invesco DWA and WisdomTree International

Considering the 90-day investment horizon Invesco DWA Developed is expected to generate 1.46 times more return on investment than WisdomTree International. However, Invesco DWA is 1.46 times more volatile than WisdomTree International Hedged. It trades about 0.01 of its potential returns per unit of risk. WisdomTree International Hedged is currently generating about -0.03 per unit of risk. If you had invested $ 4,925 in Invesco DWA Developed on December 24, 2025 and sold it today you would have earned a total of $ 15.00 from holding Invesco DWA Developed or generated 0.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Invesco DWA Developed  vs.  WisdomTree International Hedge

 Performance 
       Timeline  
Invesco DWA Developed 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Invesco DWA Developed has delivered negative risk-adjusted returns across the last 90 days, suggesting that volatility was not compensated by return. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. Despite somewhat strong forward indicators, Invesco DWA is not utilizing all of its potential. The recent price disturbance may contribute to short-term losses for investors. ...more
WisdomTree International 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
During the last 90 trading days, WisdomTree International Hedged produced negative risk-adjusted performance, which signals weak return efficiency for investors with long positions. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. Despite nearly stable fundamental indicators, WisdomTree International is not utilizing all of its potential. The latest price disturbance may contribute to mid-run losses for stockholders. ...more

Invesco DWA and WisdomTree International Volatility Contrast

   Predicted Return Distribution   
       Density  

Pair Trading with Invesco DWA and WisdomTree International

Two-leg strategies using Invesco DWA and WisdomTree International matter because the combined position can be designed to be more market-neutral. 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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