Correlation Between WisdomTree Global and EA Series

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Can any of the company-specific risk be diversified away by investing in both WisdomTree Global and EA Series 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 Global and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Global High and EA Series Trust, you can compare the effects of market volatilities on WisdomTree Global and EA Series 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 Global with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Global and EA Series.

Diversification Opportunities for WisdomTree Global and EA Series

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between WisdomTree and STXT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Global High and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and WisdomTree Global 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 Global High are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of WisdomTree Global i.e., WisdomTree Global and EA Series go up and down completely randomly.

Pair Corralation between WisdomTree Global and EA Series

Considering the 90-day investment horizon WisdomTree Global High is expected to generate 3.28 times more return on investment than EA Series. However, WisdomTree Global is 3.28 times more volatile than EA Series Trust. It trades about 0.33 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.04 per unit of risk. If you would invest  5,889  in WisdomTree Global High on November 6, 2025 and sell it today you would earn a total of  719.00  from holding WisdomTree Global High or generate 12.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

WisdomTree Global High  vs.  EA Series Trust

 Performance 
       Timeline  
WisdomTree Global High 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Global High are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, WisdomTree Global may actually be approaching a critical reversion point that can send shares even higher in March 2026.
EA Series Trust 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in EA Series Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, EA Series is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

WisdomTree Global and EA Series Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Global and EA Series

The main advantage of trading using opposite WisdomTree Global and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Global position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.
The idea behind WisdomTree Global High and EA Series Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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