Correlation Between Cosan SA and WisdomTree Ethereum
Can any of the company-specific risk be diversified away by investing in both Cosan SA and WisdomTree Ethereum 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 Cosan SA and WisdomTree Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosan SA ADR and WisdomTree Ethereum ETC, you can compare the effects of market volatilities on Cosan SA and WisdomTree Ethereum 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 Cosan SA with a short position of WisdomTree Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosan SA and WisdomTree Ethereum.
Diversification Opportunities for Cosan SA and WisdomTree Ethereum
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cosan and WisdomTree is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cosan SA ADR and WisdomTree Ethereum ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Ethereum ETC and Cosan SA 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 Cosan SA ADR are associated (or correlated) with WisdomTree Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Ethereum ETC has no effect on the direction of Cosan SA i.e., Cosan SA and WisdomTree Ethereum go up and down completely randomly.
Pair Corralation between Cosan SA and WisdomTree Ethereum
Given the investment horizon of 90 days Cosan SA ADR is expected to generate 0.81 times more return on investment than WisdomTree Ethereum. However, Cosan SA ADR is 1.23 times less risky than WisdomTree Ethereum. It trades about 0.01 of its potential returns per unit of risk. WisdomTree Ethereum ETC is currently generating about -0.19 per unit of risk. If you would invest 509.00 in Cosan SA ADR on November 14, 2025 and sell it today you would lose (6.00) from holding Cosan SA ADR or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
Cosan SA ADR vs. WisdomTree Ethereum ETC
Performance |
| Timeline |
| Cosan SA ADR |
| WisdomTree Ethereum ETC |
Cosan SA and WisdomTree Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosan SA and WisdomTree Ethereum
The main advantage of trading using opposite Cosan SA and WisdomTree Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosan SA position performs unexpectedly, WisdomTree Ethereum 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 Ethereum will offset losses from the drop in WisdomTree Ethereum's long position.| Cosan SA vs. Delek Energy | Cosan SA vs. Par Pacific Holdings | Cosan SA vs. Torm PLC Class | Cosan SA vs. Northern Oil Gas |
| WisdomTree Ethereum vs. iShares MSCI Japan | WisdomTree Ethereum vs. iShares Corp Bond | WisdomTree Ethereum vs. iShares Global High | WisdomTree Ethereum vs. SPDR MSCI Europe |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |