Correlation Between WisdomTree Emerging and WisdomTree Global

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Is diversification improved when WisdomTree Emerging Markets and WisdomTree Global ex US appear in the same portfolio? Correlation context here helps quantify the diversifiable risk between WisdomTree Emerging Markets and WisdomTree Global ex US.
This screen helps map correlation drift between WisdomTree Emerging Markets and WisdomTree Global ex US over time, not just at one snapshot. You can also test a long WisdomTree Emerging and short WisdomTree Global structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Emerging and WisdomTree Global. Go to your portfolio center

Diversification Opportunities for WisdomTree Emerging and WisdomTree Global

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between WisdomTree and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets and WisdomTree Global ex US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global 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 WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global has no effect on the direction of WisdomTree Emerging i.e., WisdomTree Emerging and WisdomTree Global go up and down completely randomly.

Pair Corralation between WisdomTree Emerging and WisdomTree Global

Given the investment horizon of 90 days WisdomTree Emerging Markets is expected to generate 1.06 times more return on investment than WisdomTree Global. However, WisdomTree Emerging is 1.06 times more volatile than WisdomTree Global ex US. It trades about 0.11 of its potential returns per unit of risk. WisdomTree Global ex US is currently generating about 0.03 per unit of risk. If you would invest 3,875 in WisdomTree Emerging Markets on December 10, 2025 and sell it today you would earn a total of 295.00 from holding WisdomTree Emerging Markets or generate 7.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

WisdomTree Emerging Markets  vs.  WisdomTree Global ex US

 Performance 
       Timeline  
WisdomTree Emerging 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree Emerging Markets rank lower than 8% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. In spite of rather fragile basic indicators, WisdomTree Emerging may actually be approaching a critical reversion point that can send shares even higher in April 2026.
WisdomTree Global 
Risk-Adjusted Performance
Soft
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree Global ex US rank lower than 2% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. Despite quite persistent basic indicators, WisdomTree Global is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

WisdomTree Emerging and WisdomTree Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Emerging and WisdomTree Global

Pair trading between WisdomTree Emerging and WisdomTree Global can reduce some unsystematic risk by balancing one position against another. Used correctly, the structure can help offset losses in one leg when unexpected sector or market pressure hits both names.
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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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