Correlation Between WisdomTree Emerging and Innovator ETFs

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Can company-specific risk be reduced by holding WisdomTree Emerging Markets and Innovator ETFs Trust together? The view summarizes correlation to explain the diversifiable risk of holding WisdomTree Emerging Markets and Innovator ETFs Trust together.
This lookup quantifies co-movement between WisdomTree Emerging Markets and Innovator ETFs Trust so position sizing can be more disciplined. You can also test a long WisdomTree Emerging and short Innovator ETFs structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Emerging and Innovator ETFs. Go to your portfolio center

Diversification Opportunities for WisdomTree Emerging and Innovator ETFs

0.9
  Correlation Coefficient
Almost no diversification
The 3 months correlation between WisdomTree and Innovator is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets 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 Emerging 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 Emerging Markets 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 Emerging i.e., WisdomTree Emerging and Innovator ETFs go up and down completely randomly.

Pair Corralation between WisdomTree Emerging and Innovator ETFs

Allowing for the 90-day total investment horizon WisdomTree Emerging Markets is expected to under-perform the Innovator ETFs. In addition to that, WisdomTree Emerging is 2.36 times more volatile than Innovator ETFs Trust. It trades about -0.03 of its total potential returns per unit of risk. Innovator ETFs Trust is currently generating about -0.01 per unit of volatility. If you had invested $ 3,007 in Innovator ETFs Trust on December 16, 2025 and sold it today you would have lost $ 12.00 from holding Innovator ETFs Trust or given up 0.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

WisdomTree Emerging Markets  vs.  Innovator ETFs Trust

 Performance 
       Timeline  
WisdomTree Emerging 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
During the last 90 trading days, WisdomTree Emerging Markets produced negative risk-adjusted performance, which signals weak return efficiency for investors with long positions. The current category mapping is Diversified Emerging Mkts. In spite of rather sound fundamental indicators, WisdomTree Emerging is not utilizing all of its potential. The newest price tumult may contribute to shorter-term losses for shareholders. ...more
Innovator ETFs Trust 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, Innovator ETFs Trust generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. Despite somewhat strong technical and fundamental indicators, Innovator ETFs is not utilizing all of its potential. The latest price disturbance may contribute to short-term losses for investors. ...more

WisdomTree Emerging and Innovator ETFs Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Emerging and Innovator ETFs

Combining WisdomTree Emerging with Innovator ETFs in a pair setup can help isolate spread behavior from broader market movement. 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 analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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