Correlation Between WisdomTree Dynamic and Bitwise 10
Can any of the company-specific risk be diversified away by investing in both WisdomTree Dynamic and Bitwise 10 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 Dynamic and Bitwise 10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Dynamic Currency and Bitwise 10 Crypto, you can compare the effects of market volatilities on WisdomTree Dynamic and Bitwise 10 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 Dynamic with a short position of Bitwise 10. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Dynamic and Bitwise 10.
Diversification Opportunities for WisdomTree Dynamic and Bitwise 10
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Bitwise is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Dynamic Currency and Bitwise 10 Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise 10 Crypto and WisdomTree Dynamic 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 Dynamic Currency are associated (or correlated) with Bitwise 10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise 10 Crypto has no effect on the direction of WisdomTree Dynamic i.e., WisdomTree Dynamic and Bitwise 10 go up and down completely randomly.
Pair Corralation between WisdomTree Dynamic and Bitwise 10
Given the investment horizon of 90 days WisdomTree Dynamic Currency is expected to generate 0.16 times more return on investment than Bitwise 10. However, WisdomTree Dynamic Currency is 6.23 times less risky than Bitwise 10. It trades about 0.31 of its potential returns per unit of risk. Bitwise 10 Crypto is currently generating about -0.09 per unit of risk. If you would invest 4,091 in WisdomTree Dynamic Currency on November 15, 2025 and sell it today you would earn a total of 533.00 from holding WisdomTree Dynamic Currency or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Dynamic Currency vs. Bitwise 10 Crypto
Performance |
| Timeline |
| WisdomTree Dynamic |
| Bitwise 10 Crypto |
WisdomTree Dynamic and Bitwise 10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Dynamic and Bitwise 10
The main advantage of trading using opposite WisdomTree Dynamic and Bitwise 10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Dynamic position performs unexpectedly, Bitwise 10 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 Bitwise 10 will offset losses from the drop in Bitwise 10's long position.| WisdomTree Dynamic vs. iShares MSCI Poland | WisdomTree Dynamic vs. iShares MSCI Emerging | WisdomTree Dynamic vs. Xtrackers MSCI Japan | WisdomTree Dynamic vs. iShares MSCI Japan |
| Bitwise 10 vs. Grayscale CoinDesk Crypto | Bitwise 10 vs. Grayscale Ethereum Trust | Bitwise 10 vs. Grayscale Litecoin Trust | Bitwise 10 vs. Grayscale 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 Valuation module to check real value of public entities based on technical and fundamental data.
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