Correlation Between WisdomTree Broad and WisdomTree Enhanced
Can any of the company-specific risk be diversified away by investing in both WisdomTree Broad 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 Broad 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 Broad Commodities and WisdomTree Enhanced Commodity, you can compare the effects of market volatilities on WisdomTree Broad 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 Broad with a short position of WisdomTree Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Broad and WisdomTree Enhanced.
Diversification Opportunities for WisdomTree Broad and WisdomTree Enhanced
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between WisdomTree and WisdomTree is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Broad Commodities 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 Broad 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 Broad Commodities 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 Broad i.e., WisdomTree Broad and WisdomTree Enhanced go up and down completely randomly.
Pair Corralation between WisdomTree Broad and WisdomTree Enhanced
Assuming the 90 days trading horizon WisdomTree Broad is expected to generate 1.23 times less return on investment than WisdomTree Enhanced. In addition to that, WisdomTree Broad is 1.04 times more volatile than WisdomTree Enhanced Commodity. It trades about 0.12 of its total potential returns per unit of risk. WisdomTree Enhanced Commodity is currently generating about 0.15 per unit of volatility. If you would invest 1,657 in WisdomTree Enhanced Commodity on November 18, 2025 and sell it today you would earn a total of 177.00 from holding WisdomTree Enhanced Commodity or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Broad Commodities vs. WisdomTree Enhanced Commodity
Performance |
| Timeline |
| WisdomTree Broad Com |
| WisdomTree Enhanced |
WisdomTree Broad and WisdomTree Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Broad and WisdomTree Enhanced
The main advantage of trading using opposite WisdomTree Broad and WisdomTree Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Broad 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 Broad vs. Vanguard FTSE Developed | WisdomTree Broad vs. Leverage Shares 2x | WisdomTree Broad vs. Amundi Index Solutions | WisdomTree Broad vs. Amundi Index Solutions |
| WisdomTree Enhanced vs. WisdomTree Zinc | WisdomTree Enhanced vs. WisdomTree Brent Crude | WisdomTree Enhanced vs. WisdomTree Aluminium 2x | WisdomTree Enhanced vs. WisdomTree Enhanced Commodity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |