Correlation Analysis Between WisdomTree Dynamic and Vanguard Growth

Analyzing existing cross correlation between WisdomTree Dynamic Currency Hed and Vanguard Growth ETF. You can compare the effects of market volatilities on WisdomTree Dynamic and Vanguard Growth 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 Dynamic with a short position of Vanguard Growth. See also your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Dynamic and Vanguard Growth.
Horizon     30 Days    Login   to change
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Comparative Performance

WisdomTree Dynamic  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Dynamic Currency Hed are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, WisdomTree Dynamic may actually be approaching a critical reversion point that can send shares even higher in February 2020.
Vanguard Growth ETF  
3030

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth ETF are ranked lower than 30 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Vanguard Growth exhibited solid returns over the last few months and may actually be approaching a breakup point.

WisdomTree Dynamic and Vanguard Growth Volatility Contrast

 Predicted Return Density 
    
  Returns 

WisdomTree Dynamic Currency He  vs.  Vanguard Growth ETF

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, WisdomTree Dynamic is expected to generate 1.45 times less return on investment than Vanguard Growth. In addition to that, WisdomTree Dynamic is 1.28 times more volatile than Vanguard Growth ETF. It trades about 0.24 of its total potential returns per unit of risk. Vanguard Growth ETF is currently generating about 0.44 per unit of volatility. If you would invest  16,688  in Vanguard Growth ETF on December 21, 2019 and sell it today you would earn a total of  2,503  from holding Vanguard Growth ETF or generate 15.0% return on investment over 30 days.

Pair Corralation between WisdomTree Dynamic and Vanguard Growth

0.93
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for WisdomTree Dynamic and Vanguard Growth

WisdomTree Dynamic Currency He diversification synergy

Almost no diversification

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