| HYIN Etf | | | USD 17.41 0.06 0.34% |
The current 90-days correlation between WisdomTree Alternative and Global X NASDAQ is 0.32 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as WisdomTree Alternative moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WisdomTree Alternative Income moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
WisdomTree Alternative Correlation With Market
Poor diversification
The correlation between WisdomTree Alternative Income and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Alternative Income and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in WisdomTree Alternative Income. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in gross domestic product.