Correlation Between MSCI ACWI and WisdomTree Quantum

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Can any of the company-specific risk be diversified away by investing in both MSCI ACWI and WisdomTree Quantum 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 MSCI ACWI and WisdomTree Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and WisdomTree Quantum Computing, you can compare the effects of market volatilities on MSCI ACWI and WisdomTree Quantum 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 MSCI ACWI with a short position of WisdomTree Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and WisdomTree Quantum.

Diversification Opportunities for MSCI ACWI and WisdomTree Quantum

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between MSCI and WisdomTree is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and WisdomTree Quantum Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Quantum and MSCI ACWI 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 MSCI ACWI exAUCONSUMER are associated (or correlated) with WisdomTree Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Quantum has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and WisdomTree Quantum go up and down completely randomly.

Pair Corralation between MSCI ACWI and WisdomTree Quantum

Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.07 times more return on investment than WisdomTree Quantum. However, MSCI ACWI exAUCONSUMER is 14.56 times less risky than WisdomTree Quantum. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Quantum Computing is currently generating about -0.06 per unit of risk. If you would invest  2,487  in MSCI ACWI exAUCONSUMER on October 7, 2025 and sell it today you would earn a total of  38.00  from holding MSCI ACWI exAUCONSUMER or generate 1.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.77%
ValuesDaily Returns

MSCI ACWI exAUCONSUMER  vs.  WisdomTree Quantum Computing

 Performance 
       Timeline  
MSCI ACWI exAUCONSUMER 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MSCI ACWI exAUCONSUMER are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MSCI ACWI is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.
WisdomTree Quantum 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree Quantum Computing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

MSCI ACWI and WisdomTree Quantum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MSCI ACWI and WisdomTree Quantum

The main advantage of trading using opposite MSCI ACWI and WisdomTree Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, WisdomTree Quantum 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 Quantum will offset losses from the drop in WisdomTree Quantum's long position.
The idea behind MSCI ACWI exAUCONSUMER and WisdomTree Quantum Computing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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