Correlation Between WisdomTree EURO and WisdomTree Blockchain

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Can any of the company-specific risk be diversified away by investing in both WisdomTree EURO and WisdomTree Blockchain 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 EURO and WisdomTree Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree EURO STOXX and WisdomTree Blockchain UCITS, you can compare the effects of market volatilities on WisdomTree EURO and WisdomTree Blockchain 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 EURO with a short position of WisdomTree Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree EURO and WisdomTree Blockchain.

Diversification Opportunities for WisdomTree EURO and WisdomTree Blockchain

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between WisdomTree and WisdomTree is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree EURO STOXX and WisdomTree Blockchain UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Blockchain and WisdomTree EURO 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 EURO STOXX are associated (or correlated) with WisdomTree Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Blockchain has no effect on the direction of WisdomTree EURO i.e., WisdomTree EURO and WisdomTree Blockchain go up and down completely randomly.

Pair Corralation between WisdomTree EURO and WisdomTree Blockchain

If you would invest  501,200  in WisdomTree EURO STOXX on October 12, 2025 and sell it today you would earn a total of  61,350  from holding WisdomTree EURO STOXX or generate 12.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy5.26%
ValuesDaily Returns

WisdomTree EURO STOXX  vs.  WisdomTree Blockchain UCITS

 Performance 
       Timeline  
WisdomTree EURO STOXX 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree EURO STOXX are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, WisdomTree EURO unveiled solid returns over the last few months and may actually be approaching a breakup point.
WisdomTree Blockchain 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree Blockchain UCITS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

WisdomTree EURO and WisdomTree Blockchain Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree EURO and WisdomTree Blockchain

The main advantage of trading using opposite WisdomTree EURO and WisdomTree Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree EURO position performs unexpectedly, WisdomTree Blockchain 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 Blockchain will offset losses from the drop in WisdomTree Blockchain's long position.
The idea behind WisdomTree EURO STOXX and WisdomTree Blockchain UCITS 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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