Correlation Between WisdomTree Asia and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both WisdomTree Asia and Innovator ETFs 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 WisdomTree Asia and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Asia Defense and Innovator ETFs Trust, you can compare the effects of market volatilities on WisdomTree Asia and Innovator ETFs 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 WisdomTree Asia with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Asia and Innovator ETFs.
Diversification Opportunities for WisdomTree Asia and Innovator ETFs
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WisdomTree and Innovator is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Asia Defense and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and WisdomTree Asia 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 WisdomTree Asia Defense are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of WisdomTree Asia i.e., WisdomTree Asia and Innovator ETFs go up and down completely randomly.
Pair Corralation between WisdomTree Asia and Innovator ETFs
Given the investment horizon of 90 days WisdomTree Asia Defense is expected to generate 5.3 times more return on investment than Innovator ETFs. However, WisdomTree Asia is 5.3 times more volatile than Innovator ETFs Trust. It trades about 0.1 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.17 per unit of risk. If you would invest 3,022 in WisdomTree Asia Defense on October 16, 2025 and sell it today you would earn a total of 292.00 from holding WisdomTree Asia Defense or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Asia Defense vs. Innovator ETFs Trust
Performance |
| Timeline |
| WisdomTree Asia Defense |
| Innovator ETFs Trust |
WisdomTree Asia and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Asia and Innovator ETFs
The main advantage of trading using opposite WisdomTree Asia and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Asia position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| WisdomTree Asia vs. Telecommunications Fund Investor | WisdomTree Asia vs. iShares Trust | WisdomTree Asia vs. Jacob Small Cap | WisdomTree Asia vs. Cullen Small Cap |
| Innovator ETFs vs. Woman In Leadership | Innovator ETFs vs. Hennessy Balanced Fund | Innovator ETFs vs. Hennessy Bp Energy | Innovator ETFs vs. Cullen Small Cap |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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