Correlation Between WisdomTree Physical and CoinShares Physical
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and CoinShares Physical 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 CoinShares Physical 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 CoinShares Physical Bitcoin, you can compare the effects of market volatilities on WisdomTree Physical and CoinShares Physical 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 CoinShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and CoinShares Physical.
Diversification Opportunities for WisdomTree Physical and CoinShares Physical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and CoinShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Bitcoin and CoinShares Physical Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares Physical 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 CoinShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares Physical has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and CoinShares Physical go up and down completely randomly.
Pair Corralation between WisdomTree Physical and CoinShares Physical
Assuming the 90 days trading horizon WisdomTree Physical Bitcoin is expected to under-perform the CoinShares Physical. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Physical Bitcoin is 1.01 times less risky than CoinShares Physical. The etf trades about -0.17 of its potential returns per unit of risk. The CoinShares Physical Bitcoin is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 7,568 in CoinShares Physical Bitcoin on November 5, 2025 and sell it today you would lose (1,621) from holding CoinShares Physical Bitcoin or give up 21.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Bitcoin vs. CoinShares Physical Bitcoin
Performance |
| Timeline |
| WisdomTree Physical |
| CoinShares Physical |
WisdomTree Physical and CoinShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and CoinShares Physical
The main advantage of trading using opposite WisdomTree Physical and CoinShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, CoinShares Physical 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 CoinShares Physical will offset losses from the drop in CoinShares Physical'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 |
| CoinShares Physical vs. iShares Ultrashort Bond | CoinShares Physical vs. 21Shares Bitcoin Cash | CoinShares Physical vs. 21Shares Cardano ETP | CoinShares Physical vs. SPDR MSCI World |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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