Correlation Between SPDR MSCI and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI and WisdomTree 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 SPDR MSCI and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR MSCI Emerging and WisdomTree International Multifactor, you can compare the effects of market volatilities on SPDR MSCI and WisdomTree 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 SPDR MSCI with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and WisdomTree International.
Diversification Opportunities for SPDR MSCI and WisdomTree International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPDR and WisdomTree is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI Emerging and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and SPDR MSCI 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 SPDR MSCI Emerging are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of SPDR MSCI i.e., SPDR MSCI and WisdomTree International go up and down completely randomly.
Pair Corralation between SPDR MSCI and WisdomTree International
Given the investment horizon of 90 days SPDR MSCI Emerging is expected to generate 1.54 times more return on investment than WisdomTree International. However, SPDR MSCI is 1.54 times more volatile than WisdomTree International Multifactor. It trades about 0.09 of its potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.08 per unit of risk. If you would invest 3,260 in SPDR MSCI Emerging on July 23, 2025 and sell it today you would earn a total of 1,051 from holding SPDR MSCI Emerging or generate 32.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR MSCI Emerging vs. WisdomTree International Multi
Performance |
Timeline |
SPDR MSCI Emerging |
WisdomTree International |
SPDR MSCI and WisdomTree International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR MSCI and WisdomTree International
The main advantage of trading using opposite SPDR MSCI and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI position performs unexpectedly, WisdomTree 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.SPDR MSCI vs. abrdn Emerging Markets | SPDR MSCI vs. Pacer Cash Cows | SPDR MSCI vs. iShares MSCI Kuwait | SPDR MSCI vs. iShares MSCI BIC |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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