Correlation Between Bitwise Funds and WisdomTree
Can any of the company-specific risk be diversified away by investing in both Bitwise Funds 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 Bitwise Funds and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Funds Trust and WisdomTree 1 3 Year, you can compare the effects of market volatilities on Bitwise Funds 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 Bitwise Funds with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Funds and WisdomTree.
Diversification Opportunities for Bitwise Funds and WisdomTree
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitwise and WisdomTree is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and WisdomTree 1 3 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree 1 3 and Bitwise Funds 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 Bitwise Funds Trust 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 1 3 has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and WisdomTree go up and down completely randomly.
Pair Corralation between Bitwise Funds and WisdomTree
Given the investment horizon of 90 days Bitwise Funds Trust is expected to generate 42.37 times more return on investment than WisdomTree. However, Bitwise Funds is 42.37 times more volatile than WisdomTree 1 3 Year. It trades about 0.25 of its potential returns per unit of risk. WisdomTree 1 3 Year is currently generating about 0.34 per unit of risk. If you would invest 3,645 in Bitwise Funds Trust on October 16, 2025 and sell it today you would earn a total of 320.00 from holding Bitwise Funds Trust or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Funds Trust vs. WisdomTree 1 3 Year
Performance |
| Timeline |
| Bitwise Funds Trust |
| WisdomTree 1 3 |
Bitwise Funds and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Funds and WisdomTree
The main advantage of trading using opposite Bitwise Funds and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Funds 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.| Bitwise Funds vs. Fm High Yield | Bitwise Funds vs. WisdomTree 1 3 Year | Bitwise Funds vs. ProShares Trust | Bitwise Funds vs. Defiance Daily Target |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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