Correlation Between WisdomTree Brent and WisdomTree Platinum
Can any of the company-specific risk be diversified away by investing in both WisdomTree Brent and WisdomTree Platinum 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 Brent and WisdomTree Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Brent Crude and WisdomTree Platinum 2x, you can compare the effects of market volatilities on WisdomTree Brent and WisdomTree Platinum 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 Brent with a short position of WisdomTree Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Brent and WisdomTree Platinum.
Diversification Opportunities for WisdomTree Brent and WisdomTree Platinum
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Brent Crude and WisdomTree Platinum 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Platinum and WisdomTree Brent 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 Brent Crude are associated (or correlated) with WisdomTree Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Platinum has no effect on the direction of WisdomTree Brent i.e., WisdomTree Brent and WisdomTree Platinum go up and down completely randomly.
Pair Corralation between WisdomTree Brent and WisdomTree Platinum
Assuming the 90 days trading horizon WisdomTree Brent is expected to generate 1.72 times less return on investment than WisdomTree Platinum. But when comparing it to its historical volatility, WisdomTree Brent Crude is 1.84 times less risky than WisdomTree Platinum. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Platinum 2x is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 356.00 in WisdomTree Platinum 2x on November 21, 2025 and sell it today you would earn a total of 191.00 from holding WisdomTree Platinum 2x or generate 53.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
WisdomTree Brent Crude vs. WisdomTree Platinum 2x
Performance |
| Timeline |
| WisdomTree Brent Crude |
| WisdomTree Platinum |
WisdomTree Brent and WisdomTree Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Brent and WisdomTree Platinum
The main advantage of trading using opposite WisdomTree Brent and WisdomTree Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Brent position performs unexpectedly, WisdomTree Platinum 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 Platinum will offset losses from the drop in WisdomTree Platinum's long position.| WisdomTree Brent vs. WisdomTree Zinc | WisdomTree Brent vs. WisdomTree Aluminium 2x | WisdomTree Brent vs. WisdomTree Enhanced Commodity | WisdomTree Brent vs. WisdomTree Gold 3x |
| WisdomTree Platinum vs. Vanguard FTSE Developed | WisdomTree Platinum vs. Leverage Shares 2x | WisdomTree Platinum vs. Amundi Index Solutions | WisdomTree Platinum vs. Amundi Index Solutions |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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