Correlation Between WisdomTree International and Main International

Can any of the company-specific risk be diversified away by investing in both WisdomTree International and Main International 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 International and Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WisdomTree International MidCap and Main International ETF, you can compare the effects of market volatilities on WisdomTree International and Main International 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 International with a short position of Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Main International.

Diversification Opportunities for WisdomTree International and Main International

0.98

Correlation Coefficient

WisdomTree International  Main International

Almost no diversification

The 3 months correlation between WisdomTree and Main is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International MidCa and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF and WisdomTree International 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 International MidCap are associated (or correlated) with Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of WisdomTree International i.e., WisdomTree International and Main International go up and down completely randomly.

Pair Corralation between WisdomTree International and Main International

Considering the 90-day investment horizon WisdomTree International MidCap is expected to generate 0.89 times more return on investment than Main International. However, WisdomTree International MidCap is 1.12 times less risky than Main International. It trades about 0.37 of its potential returns per unit of risk. Main International ETF is currently generating about 0.3 per unit of risk. If you would invest  7,654  in WisdomTree International MidCap on November 21, 2025 and sell it today you would earn a total of  1,177  from holding WisdomTree International MidCap or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

WisdomTree International MidCa  vs.  Main International ETF

WisdomTree International

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree International MidCap are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting forward indicators, WisdomTree International displayed solid returns over the last few months and may actually be approaching a breakup point.

Main International ETF

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Main International ETF are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Main International disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WisdomTree International and Main International

The main advantage of trading using opposite WisdomTree International and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.

The idea behind WisdomTree International MidCap and Main International ETF 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.