Correlation Between IShares SMIM and WisdomTree Physical
Can any of the company-specific risk be diversified away by investing in both IShares SMIM and WisdomTree 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 IShares SMIM and WisdomTree Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SMIM ETF and WisdomTree Physical Bitcoin, you can compare the effects of market volatilities on IShares SMIM and WisdomTree 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 IShares SMIM with a short position of WisdomTree Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SMIM and WisdomTree Physical.
Diversification Opportunities for IShares SMIM and WisdomTree Physical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and WisdomTree is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding iShares SMIM ETF and WisdomTree Physical Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Physical and IShares SMIM 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 iShares SMIM ETF are associated (or correlated) with WisdomTree Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Physical has no effect on the direction of IShares SMIM i.e., IShares SMIM and WisdomTree Physical go up and down completely randomly.
Pair Corralation between IShares SMIM and WisdomTree Physical
Assuming the 90 days trading horizon iShares SMIM ETF is expected to generate 0.21 times more return on investment than WisdomTree Physical. However, iShares SMIM ETF is 4.87 times less risky than WisdomTree Physical. It trades about 0.08 of its potential returns per unit of risk. WisdomTree Physical Bitcoin is currently generating about 0.0 per unit of risk. If you would invest 26,994 in iShares SMIM ETF on October 23, 2025 and sell it today you would earn a total of 4,896 from holding iShares SMIM ETF or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
iShares SMIM ETF vs. WisdomTree Physical Bitcoin
Performance |
| Timeline |
| iShares SMIM ETF |
| WisdomTree Physical |
IShares SMIM and WisdomTree Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SMIM and WisdomTree Physical
The main advantage of trading using opposite IShares SMIM and WisdomTree Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SMIM position performs unexpectedly, WisdomTree 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 WisdomTree Physical will offset losses from the drop in WisdomTree Physical's long position.| IShares SMIM vs. iShares Euro Dividend | IShares SMIM vs. iShares UK Dividend | IShares SMIM vs. iShares SP 500 | IShares SMIM vs. iShares SLI ETF |
| WisdomTree Physical vs. iShares UK Dividend | WisdomTree Physical vs. iShares SMIM ETF | WisdomTree Physical vs. iShares Euro Dividend | WisdomTree Physical vs. Lyxor DAX UCITS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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