Correlation Between Cosan SA and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both Cosan SA and WisdomTree Global 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 Global 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 Global Defense, you can compare the effects of market volatilities on Cosan SA and WisdomTree Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosan SA and WisdomTree Global.
Diversification Opportunities for Cosan SA and WisdomTree Global
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cosan and WisdomTree is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cosan SA ADR and WisdomTree Global Defense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global Defense 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global Defense has no effect on the direction of Cosan SA i.e., Cosan SA and WisdomTree Global go up and down completely randomly.
Pair Corralation between Cosan SA and WisdomTree Global
Given the investment horizon of 90 days Cosan SA ADR is expected to under-perform the WisdomTree Global. In addition to that, Cosan SA is 2.56 times more volatile than WisdomTree Global Defense. It trades about -0.04 of its total potential returns per unit of risk. WisdomTree Global Defense is currently generating about 0.14 per unit of volatility. If you would invest 3,082 in WisdomTree Global Defense on November 8, 2025 and sell it today you would earn a total of 330.00 from holding WisdomTree Global Defense or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosan SA ADR vs. WisdomTree Global Defense
Performance |
| Timeline |
| Cosan SA ADR |
| WisdomTree Global Defense |
Cosan SA and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosan SA and WisdomTree Global
The main advantage of trading using opposite Cosan SA and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosan SA position performs unexpectedly, WisdomTree Global 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 Global will offset losses from the drop in WisdomTree Global'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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