Correlation Between WisdomTree Physical and WisdomTree Copper
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and WisdomTree Copper 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 Physical and WisdomTree Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Physical Cardano and WisdomTree Copper EUR, you can compare the effects of market volatilities on WisdomTree Physical and WisdomTree Copper 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 Physical with a short position of WisdomTree Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and WisdomTree Copper.
Diversification Opportunities for WisdomTree Physical and WisdomTree Copper
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and WisdomTree is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Cardano and WisdomTree Copper EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Copper EUR and WisdomTree Physical 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 Physical Cardano are associated (or correlated) with WisdomTree Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Copper EUR has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and WisdomTree Copper go up and down completely randomly.
Pair Corralation between WisdomTree Physical and WisdomTree Copper
Assuming the 90 days trading horizon WisdomTree Physical is expected to generate 1.66 times less return on investment than WisdomTree Copper. In addition to that, WisdomTree Physical is 1.83 times more volatile than WisdomTree Copper EUR. It trades about 0.07 of its total potential returns per unit of risk. WisdomTree Copper EUR is currently generating about 0.2 per unit of volatility. If you would invest 4,100 in WisdomTree Copper EUR on October 20, 2025 and sell it today you would earn a total of 284.00 from holding WisdomTree Copper EUR or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Cardano vs. WisdomTree Copper EUR
Performance |
| Timeline |
| WisdomTree Physical |
| WisdomTree Copper EUR |
WisdomTree Physical and WisdomTree Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and WisdomTree Copper
The main advantage of trading using opposite WisdomTree Physical and WisdomTree Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, WisdomTree Copper 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 Copper will offset losses from the drop in WisdomTree Copper's long position.| WisdomTree Physical vs. WisdomTree Wheat EUR | WisdomTree Physical vs. WisdomTree Physical Bitcoin | WisdomTree Physical vs. WisdomTree Gold EUR | WisdomTree Physical vs. WisdomTree Physical Polkadot |
| WisdomTree Copper vs. WisdomTree Wheat EUR | WisdomTree Copper vs. WisdomTree Physical Bitcoin | WisdomTree Copper vs. WisdomTree Gold EUR | WisdomTree Copper vs. WisdomTree Physical Cardano |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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