Correlation Between WisdomTree Battery and WisdomTree WTI
Can any of the company-specific risk be diversified away by investing in both WisdomTree Battery and WisdomTree WTI 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 Battery and WisdomTree WTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Battery Solutions and WisdomTree WTI Crude, you can compare the effects of market volatilities on WisdomTree Battery and WisdomTree WTI 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 Battery with a short position of WisdomTree WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Battery and WisdomTree WTI.
Diversification Opportunities for WisdomTree Battery and WisdomTree WTI
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Battery Solutions and WisdomTree WTI Crude in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree WTI Crude and WisdomTree Battery 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 Battery Solutions are associated (or correlated) with WisdomTree WTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree WTI Crude has no effect on the direction of WisdomTree Battery i.e., WisdomTree Battery and WisdomTree WTI go up and down completely randomly.
Pair Corralation between WisdomTree Battery and WisdomTree WTI
Assuming the 90 days trading horizon WisdomTree Battery is expected to generate 8.67 times less return on investment than WisdomTree WTI. But when comparing it to its historical volatility, WisdomTree Battery Solutions is 2.2 times less risky than WisdomTree WTI. It trades about 0.02 of its potential returns per unit of risk. WisdomTree WTI Crude is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 893.00 in WisdomTree WTI Crude on November 6, 2025 and sell it today you would earn a total of 100.00 from holding WisdomTree WTI Crude or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Battery Solutions vs. WisdomTree WTI Crude
Performance |
| Timeline |
| WisdomTree Battery |
| WisdomTree WTI Crude |
WisdomTree Battery and WisdomTree WTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Battery and WisdomTree WTI
The main advantage of trading using opposite WisdomTree Battery and WisdomTree WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Battery position performs unexpectedly, WisdomTree WTI 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 WTI will offset losses from the drop in WisdomTree WTI's long position.| WisdomTree Battery vs. GraniteShares 3x Long | WisdomTree Battery vs. GraniteShares 3x Long | WisdomTree Battery vs. Leverage Shares 3x | WisdomTree Battery vs. Leverage Shares 3x |
| WisdomTree WTI vs. GraniteShares 3x Long | WisdomTree WTI vs. Leverage Shares 2x | WisdomTree WTI vs. Leverage Shares 3x | WisdomTree WTI vs. Leverage Shares 3x |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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