| MTGP Etf | | | USD 43.84 0.12 0.27% |
The current 90-days correlation between WisdomTree Mortgage Plus and Janus Henderson Mortgage Backed is 0.75 (i.e., Poor diversification). The correlation of WisdomTree Mortgage is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
WisdomTree Mortgage Correlation With Market
Average diversification
The correlation between WisdomTree Mortgage Plus and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Mortgage Plus and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in WisdomTree Mortgage Plus. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in price.