Correlation Between WisdomTree International and Bitwise Ethereum
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and Bitwise 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 WisdomTree International and Bitwise Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International High and Bitwise Ethereum ETF, you can compare the effects of market volatilities on WisdomTree International and Bitwise 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 WisdomTree International with a short position of Bitwise Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Bitwise Ethereum.
Diversification Opportunities for WisdomTree International and Bitwise Ethereum
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Bitwise is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International High and Bitwise Ethereum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Ethereum ETF and WisdomTree International 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 International High are associated (or correlated) with Bitwise Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Ethereum ETF has no effect on the direction of WisdomTree International i.e., WisdomTree International and Bitwise Ethereum go up and down completely randomly.
Pair Corralation between WisdomTree International and Bitwise Ethereum
Considering the 90-day investment horizon WisdomTree International High is expected to generate 0.19 times more return on investment than Bitwise Ethereum. However, WisdomTree International High is 5.25 times less risky than Bitwise Ethereum. It trades about 0.11 of its potential returns per unit of risk. Bitwise Ethereum ETF is currently generating about 0.02 per unit of risk. If you would invest 3,612 in WisdomTree International High on October 21, 2025 and sell it today you would earn a total of 1,640 from holding WisdomTree International High or generate 45.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.66% |
| Values | Daily Returns |
WisdomTree International High vs. Bitwise Ethereum ETF
Performance |
| Timeline |
| WisdomTree International |
| Bitwise Ethereum ETF |
WisdomTree International and Bitwise Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and Bitwise Ethereum
The main advantage of trading using opposite WisdomTree International and Bitwise Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, Bitwise 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 Bitwise Ethereum will offset losses from the drop in Bitwise Ethereum's long position.The idea behind WisdomTree International High and Bitwise Ethereum ETF 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.
| Bitwise Ethereum vs. Grayscale Bitcoin Trust | Bitwise Ethereum vs. ProShares Bitcoin Strategy | Bitwise Ethereum vs. Simplify Equity PLUS | Bitwise Ethereum vs. Grayscale Bitcoin Mini |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |