Correlation Between WisdomTree Silver and WisdomTree Enhanced
Can any of the company-specific risk be diversified away by investing in both WisdomTree Silver and WisdomTree Enhanced 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 Silver and WisdomTree Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Silver 3x and WisdomTree Enhanced Commodity, you can compare the effects of market volatilities on WisdomTree Silver and WisdomTree Enhanced 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 Silver with a short position of WisdomTree Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Silver and WisdomTree Enhanced.
Diversification Opportunities for WisdomTree Silver and WisdomTree Enhanced
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Silver 3x and WisdomTree Enhanced Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Enhanced and WisdomTree Silver 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 Silver 3x are associated (or correlated) with WisdomTree Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Enhanced has no effect on the direction of WisdomTree Silver i.e., WisdomTree Silver and WisdomTree Enhanced go up and down completely randomly.
Pair Corralation between WisdomTree Silver and WisdomTree Enhanced
Assuming the 90 days trading horizon WisdomTree Silver 3x is expected to generate 11.71 times more return on investment than WisdomTree Enhanced. However, WisdomTree Silver is 11.71 times more volatile than WisdomTree Enhanced Commodity. It trades about 0.38 of its potential returns per unit of risk. WisdomTree Enhanced Commodity is currently generating about -0.11 per unit of risk. If you would invest 24,484 in WisdomTree Silver 3x on September 30, 2025 and sell it today you would earn a total of 15,246 from holding WisdomTree Silver 3x or generate 62.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
WisdomTree Silver 3x vs. WisdomTree Enhanced Commodity
Performance |
| Timeline |
| WisdomTree Silver |
| WisdomTree Enhanced |
WisdomTree Silver and WisdomTree Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Silver and WisdomTree Enhanced
The main advantage of trading using opposite WisdomTree Silver and WisdomTree Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Silver position performs unexpectedly, WisdomTree Enhanced 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 Enhanced will offset losses from the drop in WisdomTree Enhanced's long position.| WisdomTree Silver vs. WisdomTree Zinc | WisdomTree Silver vs. WisdomTree Brent Crude | WisdomTree Silver vs. WisdomTree Aluminium 2x | WisdomTree Silver vs. WisdomTree Enhanced Commodity |
| WisdomTree Enhanced vs. WisdomTree Zinc | WisdomTree Enhanced vs. WisdomTree Brent Crude | WisdomTree Enhanced vs. WisdomTree Aluminium 2x | WisdomTree Enhanced vs. WisdomTree Gold 3x |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |