WisdomTree Europe Hedged Etf Volatility
| HEDJ Etf | USD 51.88 -0.62 -1.18% |
Over the designated horizon, WisdomTree Europe Hedged maintains a minimal volatility profile. WisdomTree Europe Hedged indicates a Sharpe Ratio (Efficiency) of -0.0187, suggesting weak return efficiency over the last 3 months. The current setup includes 24 technical indicators relevant to risk behavior.
Sharpe Ratio = -0.0187
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | HEDJ |
For WisdomTree Europe Hedged, recent data highlights a Market Risk Adjusted Performance of 0.1%, a Risk of 0.93, and a Risk Adjusted Performance of -0.01%. Monthly moving average analysis shows WisdomTree Europe is not yet reaching its full return potential. Incorporating it into a well-diversified portfolio can enhance total return while reducing risk.
Key indicators related to WisdomTree Europe's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
WisdomTree Europe's volatility is most commonly measured using the annualized standard deviation of daily returns. This statistical measure reflects the magnitude of WisdomTree Europe's typical price swings and is a primary input in options pricing models.
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Volatility Strategy
WisdomTree Europe Hedged return fluctuations can modify its marginal contribution to total portfolio variance. Allocation size and correlation determine overall impact. Current statistical measures show total volatility near 0.93% with a beta coefficient of -0.23, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.0187, evaluates return per unit of total risk. An alpha value of -0.047 reflects performance relative to systematic market exposure. Expected return estimates near -0.0174% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Premium/discount behavior may widen during stress.
Main indicators related to WisdomTree Europe's market risk premium analysis include:
Beta -0.23 | Alpha -0.05 | Risk 0.93 | Sharpe Ratio -0.02 | Expected Return -0.02 |
Moving together with WisdomTree Etf
| 0.9 | VGK | Vanguard FTSE Europe | PairCorr |
| 0.89 | EZU | iShares MSCI Eurozone | PairCorr |
| 0.9 | BBEU | JPMorgan BetaBuilders | PairCorr |
| 0.9 | IEUR | iShares Core MSCI | PairCorr |
| 0.87 | FEZ | SPDR EURO STOXX | PairCorr |
| 0.89 | IEV | iShares Europe ETF | PairCorr |
| 0.89 | DBEU | Xtrackers MSCI Europe | PairCorr |
| 0.92 | HEZU | iShares Currency Hedged | PairCorr |
| 0.69 | KORU | Direxion Daily South Trending | PairCorr |
| 0.71 | GDXU | MicroSectors Gold Miners | PairCorr |
| 0.64 | JNUG | Direxion Daily Junior | PairCorr |
| 0.69 | URAA | Direxion Shares ETF | PairCorr |
| 0.78 | TSMG | Leverage Shares 2X | PairCorr |
| 0.72 | DES | WisdomTree SmallCap | PairCorr |
| 0.63 | CAT | Caterpillar | PairCorr |
Sensitivity To Market
WisdomTree Europe Hedged exhibits a beta of -0.23, representing its market-relative sensitivity based on regression modeling. Beta quantifies systematic risk by measuring the slope of asset returns against benchmark returns. Overall return volatility is approximately 0.93%.Volatility metrics for WisdomTree Europe Hedged describe how stable or unstable returns have been over the selected window. Current downside deviation is about 0.0%. Options markets imply a forward-looking volatility estimate near 30.0%. This reflects comparatively contained forward-looking volatility expectations. ETF dispersion can change when liquidity shifts in the underlying holdings or when spreads widen. Premium/discount to NAV is often expressed as (Price − NAV) / NAV × 100 when NAV is available.
| α | -0.047 | β | -0.2276 | Check current 90 days WisdomTree Europe correlation with market (Dow Jones Industrial)
Downside Risk
The standard deviation of WisdomTree measures how widely its daily prices are dispersed around the mean for a given time period. Highly volatile instruments have large standard deviations; stable instruments have small ones.
Standard Deviation | 0.93 |
Standard deviation captures both upside and downside movement in WisdomTree Europe. However, investors specifically concerned with loss potential should use downside deviation or semi-deviation of WisdomTree Europe's returns. For WisdomTree Europe Hedged, recent data highlights a Maximum Drawdown of 4.74.
Using WisdomTree Put Option to Manage Risk Based on 2026-05-15 Contracts
For WisdomTree Europe Hedged, recent data highlights an Option Implied Volatility of 0.30 and an Option Max Pain Price of -1. Put options on WisdomTree Europe serve as a defensive tool for investors who want to protect their position. By purchasing a put on WisdomTree Etf, the holder secures the right to sell at the strike price regardless of how far WisdomTree Europe's drops.
WisdomTree Europe's PUT expiring on 2026-05-15
Profit |
| WisdomTree Europe Price At Expiration |
Current WisdomTree Europe Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | HEDJ260515P00056000 | -0.97947 | 0.011974 | 150 | 2026-05-15 | 3.3 - 4.5 | 0.0 | View |
Put | HEDJ260515P00058000 | 0.0 | 0.0 | 2 | 2026-05-15 | 3.4 - 7.4 | 0.0 | View |
Etf Volatility Analysis
WisdomTree Europe etf volatility is a measure of the speed and extent of WisdomTree Europe's price movements. High volatility generally means the etf price moves dramatically up or down in a short period of time. Low volatility means WisdomTree Europe's price does not fluctuate dramatically and tends to be more predictable.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. WisdomTree Europe Hedged Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Projected Return Density Against Market
Given the investment horizon of 90 days WisdomTree Europe Hedged has a beta of -0.2276 . This usually indicates that as returns on the benchmark increase, returns on WisdomTree Europe tend to move in the opposite direction, though by a smaller magnitude. During a bear market, however, WisdomTree Europe Hedged is likely to outperform the market.Investors in WisdomTree Europe face systematic risk from overall etf market trends and unsystematic risk from company or sector-specific developments. Diversification reduces specific exposure, but macro-driven volatility persists. Beta remains a common sensitivity metric. For WisdomTree Europe Hedged, recent data highlights a Mean Deviation of 0.66, an Option Implied Volatility of 0.30, and a Standard Deviation of 0.90.
Predicted Return Density |
| Returns |
What Drives WisdomTree Europe's Price Volatility?
Several factors can influence WisdomTree Europe's market volatility:Industry Dynamics
Sector-level events can directly affect WisdomTree Europe's price stability. Regulatory changes, supply disruptions, or shifts in demand within WisdomTree Europe's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like WisdomTree Europe.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for WisdomTree Europe's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward WisdomTree Europe. During periods of economic expansion, WisdomTree Europe's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.WisdomTree Europe's Company-Specific Factors
Volatility can also stem from events unique to WisdomTree Europe. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in WisdomTree Europe's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on WisdomTree Europe's share price.Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of WisdomTree Europe is -5344.14. The daily returns are distributed with a variance of 0.87 and standard deviation of 0.93. The mean deviation of WisdomTree Europe Hedged is currently at 0.67. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.047 | |
β | Beta against Dow Jones | -0.2276 | |
σ | Overall volatility | 0.93 | |
Ir | Information ratio | 0.06 |
Etf Return Volatility
WisdomTree Europe return volatility captures the typical daily swing in etf returns relative to the mean over the selected period. The fund has volatility of 0.9305% on return distribution over a 90-day investment horizon. Meanwhile, Dow Jones Industrial has volatility of 0.8239% on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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WisdomTree Europe Constituents Risk-Adjusted Indicators
Evaluating WisdomTree Etf requires separating price momentum from underlying business quality relative to competitors. Without reviewing risk-adjusted indicators, investors may overweight recent returns and underweight the volatility required to achieve them. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| DES | 0.75 | 0.13 | 0.12 | 0.03 | 0.91 | 1.56 | 5.63 | |||
| IXC | 1.02 | 0.44 | 0.41 | 3.37 | 0.88 | 2.33 | 5.05 | |||
| EPP | 0.76 | 0.17 | 0.17 | 0.14 | 0.94 | 1.35 | 4.53 | |||
| IYG | 0.87 | -0.08 | 0.00 | -0.15 | 0.00 | 1.34 | 6.06 | |||
| DGS | 0.74 | 0.07 | 0.14 | -0.83 | 1.05 | 1.52 | 5.36 | |||
| REGL | 0.60 | 0.05 | 0.11 | 0.00 | 0.72 | 1.26 | 3.90 | |||
| DIVI | 0.71 | 0.12 | 0.11 | 0.05 | 1.10 | 1.29 | 5.11 | |||
| TILT | 0.58 | -0.07 | 0.00 | 0.31 | 0.00 | 0.88 | 3.85 | |||
| IPAC | 0.82 | 0.15 | 0.13 | 0.07 | 1.08 | 1.54 | 6.15 | |||
| WTV | 0.54 | 0.06 | 0.11 | 0.00 | 0.74 | 1.44 | 3.31 |
Risk Metrics, Assumptions & Methodology
Volatility for WisdomTree Europe reflects price dispersion, spread stability, and underlying basket liquidity conditions. Observed drawdowns appear relatively moderate compared with broader market swings.
For WisdomTree Europe Hedged, this section uses fund disclosures and market reference feeds with Macroaxis normalization rules applied to keep cross-asset comparisons consistent. Intraday timing differences may exist. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Gabriel Shpitalnik - Member of Macroaxis Editorial BoardWisdomTree Europe Investment Opportunity
WisdomTree Europe Hedged is about 1.13 times more volatile than Dow Jones Industrial based on recent return behavior. The higher-risk profile should usually be reviewed beside Sharpe Ratio, downside risk, and catalyst strength before the position is sized up.You can use WisdomTree Europe Hedged to protect your portfolios against small market fluctuations. This directional read frames the latest price swing through a simple momentum and follow-through lens. It gives extra weight to the size of the move, the quote level, and whether the instrument trades in a hype-prone venue. a somewhat bearish sentiment, but the market may correct it shortly. Check odds of WisdomTree Europe to be traded at $50.32 in 90 days.Poor diversification
HEDJ currently posts a 0.7 correlation with DJI, indicating a Poor diversification relationship for the active sample. The cleaner interpretation is to review correlation beside volatility, expected return, and the role each holding plays in the portfolio.
WisdomTree Europe Additional Risk Indicators
Risk analysis around WisdomTree Europe Hedged becomes more useful when investors review secondary indicators that can confirm, refine, or challenge the basic volatility picture. The stronger process compares similar securities with comparable growth and valuation context before ranking one as more or less risky.
| Risk Adjusted Performance | -0.01 | |||
| Market Risk Adjusted Performance | 0.1317 | |||
| Mean Deviation | 0.6573 | |||
| Coefficient Of Variation | -5,114 | |||
| Standard Deviation | 0.9045 | |||
| Variance | 0.8181 | |||
| Information Ratio | 0.0634 |
WisdomTree Europe Suggested Diversification Pairs
A pair strategy built around WisdomTree Europe Hedged is useful when investors want to reduce directional market exposure while still expressing a relative-value idea. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
While pairing positions reduces portfolio risk, some forms of risk persist no matter which instruments are combined. No matter how well a pair is constructed around WisdomTree Europe, market-wide risk remains. What pair trading can address is WisdomTree Europe's unsystematic risk - the portion driven by company or sector-specific factors rather than broad market forces.
More Resources for WisdomTree Etf Analysis
A structured review of WisdomTree Europe Hedged begins with its financial statements and overall trends. These ratios help explain how earnings, efficiency, and value creation are connected. Values are derived from WisdomTree Europe's disclosed financial information. Supporting reports for WisdomTree Europe Hedged Etf are presented below:Review Risk vs Return Analysis to understand diversified portfolio construction. Clearer exposure analysis supports long-term portfolio balance. Diversified allocation aims to distribute exposure across multiple positions. All values are based on available data and provided as reference information. The allocation shows a weighting toward WisdomTree Europe Hedged. The position is captured in the allocation summary. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in discontinued. WisdomTree Europe currently shows P/E of 15.33. Investors get more value from WisdomTree Europe analysis when it is combined with the construction and diversification tools listed below. WisdomTree Europe peer comparison and risk tools below help frame relative strengths and weaknesses. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
The gap between WisdomTree Europe's market value and book value reflects how the market perceives future potential versus historical cost. WisdomTree Europe P/B of 1.67 shows the market assigns a modest premium over accounting equity. Where intrinsic value falls relative to market price and book value helps frame the analytical picture.
WisdomTree Europe intrinsic value attempts to capture underlying worth, separate from current trading levels. For WisdomTree Europe, key inputs include a P/E ratio of 15.33, and a P/B ratio of 1.67.