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 Ethereum, 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
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and CoinShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Bitcoin and CoinShares Physical Ethereum 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 generate 0.74 times more return on investment than CoinShares Physical. However, WisdomTree Physical Bitcoin is 1.36 times less risky than CoinShares Physical. It trades about -0.16 of its potential returns per unit of risk. CoinShares Physical Ethereum is currently generating about -0.18 per unit of risk. If you would invest 1,773 in WisdomTree Physical Bitcoin on November 17, 2025 and sell it today you would lose (501.00) from holding WisdomTree Physical Bitcoin or give up 28.26% 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 Ethereum
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. CoinShares Physical Bitcoin | WisdomTree Physical vs. WisdomTree Ethereum ETC | WisdomTree Physical vs. 21Shares Bitcoin Cash | WisdomTree Physical vs. 21Shares Stellar ETP |
| CoinShares Physical vs. WisdomTree Physical Bitcoin | CoinShares Physical vs. CoinShares Physical Bitcoin | CoinShares Physical vs. WisdomTree Ethereum ETC | CoinShares Physical vs. 21Shares Bitcoin Cash |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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