Correlation Between 21Shares Ripple and WisdomTree Europe
Can any of the company-specific risk be diversified away by investing in both 21Shares Ripple and WisdomTree Europe 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 Ripple and WisdomTree Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Ripple XRP and WisdomTree Europe SmallCap, you can compare the effects of market volatilities on 21Shares Ripple and WisdomTree Europe 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 Ripple with a short position of WisdomTree Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Ripple and WisdomTree Europe.
Diversification Opportunities for 21Shares Ripple and WisdomTree Europe
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 21Shares and WisdomTree is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Ripple XRP and WisdomTree Europe SmallCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe and 21Shares Ripple 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 Ripple XRP are associated (or correlated) with WisdomTree Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe has no effect on the direction of 21Shares Ripple i.e., 21Shares Ripple and WisdomTree Europe go up and down completely randomly.
Pair Corralation between 21Shares Ripple and WisdomTree Europe
Assuming the 90 days trading horizon 21Shares Ripple XRP is expected to under-perform the WisdomTree Europe. In addition to that, 21Shares Ripple is 21.81 times more volatile than WisdomTree Europe SmallCap. It trades about -0.07 of its total potential returns per unit of risk. WisdomTree Europe SmallCap is currently generating about 0.41 per unit of volatility. If you would invest 2,198 in WisdomTree Europe SmallCap on November 17, 2025 and sell it today you would earn a total of 208.00 from holding WisdomTree Europe SmallCap or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Ripple XRP vs. WisdomTree Europe SmallCap
Performance |
| Timeline |
| 21Shares Ripple XRP |
| WisdomTree Europe |
21Shares Ripple and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Ripple and WisdomTree Europe
The main advantage of trading using opposite 21Shares Ripple and WisdomTree Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Ripple position performs unexpectedly, WisdomTree Europe 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 Europe will offset losses from the drop in WisdomTree Europe's long position.| 21Shares Ripple vs. 21Shares Polygon ETP | 21Shares Ripple vs. 21Shares Bitcoin Core | 21Shares Ripple vs. 21Shares Ethereum Core | 21Shares Ripple vs. 21Shares Tezos staking |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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