Correlation Between ASA Gold and WisdomTree
Can any of the company-specific risk be diversified away by investing in both ASA Gold and WisdomTree 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 ASA Gold and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASA Gold and and WisdomTree, you can compare the effects of market volatilities on ASA Gold and WisdomTree 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 ASA Gold with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASA Gold and WisdomTree.
Diversification Opportunities for ASA Gold and WisdomTree
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASA and WisdomTree is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ASA Gold and and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree and ASA Gold 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 ASA Gold and are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree has no effect on the direction of ASA Gold i.e., ASA Gold and WisdomTree go up and down completely randomly.
Pair Corralation between ASA Gold and WisdomTree
Considering the 90-day investment horizon ASA Gold is expected to generate 1.04 times less return on investment than WisdomTree. In addition to that, ASA Gold is 1.54 times more volatile than WisdomTree. It trades about 0.18 of its total potential returns per unit of risk. WisdomTree is currently generating about 0.28 per unit of volatility. If you would invest 1,169 in WisdomTree on November 8, 2025 and sell it today you would earn a total of 454.00 from holding WisdomTree or generate 38.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASA Gold and vs. WisdomTree
Performance |
| Timeline |
| ASA Gold |
| WisdomTree |
ASA Gold and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASA Gold and WisdomTree
The main advantage of trading using opposite ASA Gold and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASA Gold position performs unexpectedly, WisdomTree 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 will offset losses from the drop in WisdomTree's long position.| ASA Gold vs. Bain Capital Specialty | ASA Gold vs. Kayne Anderson BDC | ASA Gold vs. Carlyle Secured Lending | ASA Gold vs. PennantPark Floating Rate |
| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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