Correlation Between 21Shares Bitcoin and WisdomTree Ethereum
Can any of the company-specific risk be diversified away by investing in both 21Shares Bitcoin and WisdomTree Ethereum 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 21Shares Bitcoin and WisdomTree Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Bitcoin Cash and WisdomTree Ethereum ETC, you can compare the effects of market volatilities on 21Shares Bitcoin and WisdomTree Ethereum 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 21Shares Bitcoin with a short position of WisdomTree Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Bitcoin and WisdomTree Ethereum.
Diversification Opportunities for 21Shares Bitcoin and WisdomTree Ethereum
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 21Shares and WisdomTree is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Bitcoin Cash and WisdomTree Ethereum ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Ethereum ETC and 21Shares Bitcoin 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 21Shares Bitcoin Cash are associated (or correlated) with WisdomTree Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Ethereum ETC has no effect on the direction of 21Shares Bitcoin i.e., 21Shares Bitcoin and WisdomTree Ethereum go up and down completely randomly.
Pair Corralation between 21Shares Bitcoin and WisdomTree Ethereum
Assuming the 90 days trading horizon 21Shares Bitcoin Cash is expected to generate 0.95 times more return on investment than WisdomTree Ethereum. However, 21Shares Bitcoin Cash is 1.05 times less risky than WisdomTree Ethereum. It trades about 0.01 of its potential returns per unit of risk. WisdomTree Ethereum ETC is currently generating about -0.12 per unit of risk. If you would invest 2,159 in 21Shares Bitcoin Cash on November 29, 2025 and sell it today you would lose (51.00) from holding 21Shares Bitcoin Cash or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Bitcoin Cash vs. WisdomTree Ethereum ETC
Performance |
| Timeline |
| 21Shares Bitcoin Cash |
| WisdomTree Ethereum ETC |
21Shares Bitcoin and WisdomTree Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Bitcoin and WisdomTree Ethereum
The main advantage of trading using opposite 21Shares Bitcoin and WisdomTree Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Bitcoin position performs unexpectedly, WisdomTree Ethereum 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 Ethereum will offset losses from the drop in WisdomTree Ethereum's long position.| 21Shares Bitcoin vs. 21Shares Ripple XRP | 21Shares Bitcoin vs. Grayscale Bitcoin Cash | 21Shares Bitcoin vs. 21Shares Ethereum Staking | 21Shares Bitcoin vs. 21Shares Crypto Basket |
| WisdomTree Ethereum vs. iShares MSCI Japan | WisdomTree Ethereum vs. iShares Corp Bond | WisdomTree Ethereum vs. iShares Global High | WisdomTree Ethereum vs. SPDR MSCI Europe |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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