Correlation Between 21Shares Ethereum and WisdomTree Battery
Can any of the company-specific risk be diversified away by investing in both 21Shares Ethereum and WisdomTree Battery 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 Ethereum and WisdomTree Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Ethereum ETP and WisdomTree Battery Solutions, you can compare the effects of market volatilities on 21Shares Ethereum and WisdomTree Battery 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 Ethereum with a short position of WisdomTree Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Ethereum and WisdomTree Battery.
Diversification Opportunities for 21Shares Ethereum and WisdomTree Battery
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 21Shares and WisdomTree is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Ethereum ETP and WisdomTree Battery Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery and 21Shares Ethereum 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 Ethereum ETP are associated (or correlated) with WisdomTree Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Battery has no effect on the direction of 21Shares Ethereum i.e., 21Shares Ethereum and WisdomTree Battery go up and down completely randomly.
Pair Corralation between 21Shares Ethereum and WisdomTree Battery
Assuming the 90 days trading horizon 21Shares Ethereum ETP is expected to under-perform the WisdomTree Battery. In addition to that, 21Shares Ethereum is 2.57 times more volatile than WisdomTree Battery Solutions. It trades about -0.16 of its total potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.09 per unit of volatility. If you would invest 4,648 in WisdomTree Battery Solutions on November 19, 2025 and sell it today you would earn a total of 393.00 from holding WisdomTree Battery Solutions or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
21Shares Ethereum ETP vs. WisdomTree Battery Solutions
Performance |
| Timeline |
| 21Shares Ethereum ETP |
| WisdomTree Battery |
21Shares Ethereum and WisdomTree Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Ethereum and WisdomTree Battery
The main advantage of trading using opposite 21Shares Ethereum and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Ethereum position performs unexpectedly, WisdomTree Battery 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 Battery will offset losses from the drop in WisdomTree Battery's long position.| 21Shares Ethereum vs. Xtrackers DAX ESG | 21Shares Ethereum vs. iShares Swiss Domestic | 21Shares Ethereum vs. UBS ETF plc | 21Shares Ethereum vs. iShares Swiss Domestic |
| WisdomTree Battery vs. iShares MSCI Japan | WisdomTree Battery vs. 21Shares Ethereum ETP | WisdomTree Battery vs. iShares Global High | WisdomTree Battery vs. iShares Swiss Domestic |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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