Correlation Between WisdomTree Physical and 21Shares Stellar
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and 21Shares Stellar 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 Physical and 21Shares Stellar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Physical Bitcoin and 21Shares Stellar ETP, you can compare the effects of market volatilities on WisdomTree Physical and 21Shares Stellar 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 Physical with a short position of 21Shares Stellar. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and 21Shares Stellar.
Diversification Opportunities for WisdomTree Physical and 21Shares Stellar
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and 21Shares is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Bitcoin and 21Shares Stellar ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Stellar ETP and WisdomTree Physical 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 Physical Bitcoin are associated (or correlated) with 21Shares Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Stellar ETP has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and 21Shares Stellar go up and down completely randomly.
Pair Corralation between WisdomTree Physical and 21Shares Stellar
Assuming the 90 days trading horizon WisdomTree Physical Bitcoin is expected to generate 0.74 times more return on investment than 21Shares Stellar. However, WisdomTree Physical Bitcoin is 1.34 times less risky than 21Shares Stellar. It trades about -0.16 of its potential returns per unit of risk. 21Shares Stellar ETP is currently generating about -0.13 per unit of risk. If you would invest 1,734 in WisdomTree Physical Bitcoin on November 19, 2025 and sell it today you would lose (482.00) from holding WisdomTree Physical Bitcoin or give up 27.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Bitcoin vs. 21Shares Stellar ETP
Performance |
| Timeline |
| WisdomTree Physical |
| 21Shares Stellar ETP |
WisdomTree Physical and 21Shares Stellar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and 21Shares Stellar
The main advantage of trading using opposite WisdomTree Physical and 21Shares Stellar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, 21Shares Stellar 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 21Shares Stellar will offset losses from the drop in 21Shares Stellar's long position.| WisdomTree Physical vs. iShares UK Dividend | WisdomTree Physical vs. iShares SMIM ETF | WisdomTree Physical vs. iShares Euro Dividend | WisdomTree Physical vs. Lyxor DAX UCITS |
| 21Shares Stellar vs. 21Shares Polygon ETP | 21Shares Stellar vs. 21Shares Bitcoin Core | 21Shares Stellar vs. 21Shares Ethereum Core | 21Shares Stellar 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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