Correlation Between WisdomTree Physical and LG Battery
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and LG Battery 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 LG Battery 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 LG Battery Value Chain, you can compare the effects of market volatilities on WisdomTree Physical and LG Battery 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 LG Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and LG Battery.
Diversification Opportunities for WisdomTree Physical and LG Battery
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and BATT is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Bitcoin and LG Battery Value Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Battery Value 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 LG Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Battery Value has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and LG Battery go up and down completely randomly.
Pair Corralation between WisdomTree Physical and LG Battery
Assuming the 90 days trading horizon WisdomTree Physical Bitcoin is expected to under-perform the LG Battery. In addition to that, WisdomTree Physical is 1.28 times more volatile than LG Battery Value Chain. It trades about -0.14 of its total potential returns per unit of risk. LG Battery Value Chain is currently generating about 0.11 per unit of volatility. If you would invest 2,177 in LG Battery Value Chain on November 4, 2025 and sell it today you would earn a total of 321.00 from holding LG Battery Value Chain or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Bitcoin vs. LG Battery Value Chain
Performance |
| Timeline |
| WisdomTree Physical |
| LG Battery Value |
WisdomTree Physical and LG Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and LG Battery
The main advantage of trading using opposite WisdomTree Physical and LG Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, LG Battery 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 LG Battery will offset losses from the drop in LG Battery'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 |
| LG Battery vs. ARK Genomic | LG Battery vs. Vanguard FTSE Emerging | LG Battery vs. UBS ETF MSCI | LG Battery vs. Amundi MSCI Semiconductors |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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