Correlation Between WisdomTree Trust and WisdomTree High
Can any of the company-specific risk be diversified away by investing in both WisdomTree Trust and WisdomTree High 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 Trust and WisdomTree High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Trust and WisdomTree High Dividend, you can compare the effects of market volatilities on WisdomTree Trust and WisdomTree High 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 Trust with a short position of WisdomTree High. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Trust and WisdomTree High.
Diversification Opportunities for WisdomTree Trust and WisdomTree High
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and WisdomTree is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Trust and WisdomTree High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High Dividend and WisdomTree Trust 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 Trust are associated (or correlated) with WisdomTree High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree High Dividend has no effect on the direction of WisdomTree Trust i.e., WisdomTree Trust and WisdomTree High go up and down completely randomly.
Pair Corralation between WisdomTree Trust and WisdomTree High
Assuming the 90 days trading horizon WisdomTree Trust is expected to generate 4.62 times more return on investment than WisdomTree High. However, WisdomTree Trust is 4.62 times more volatile than WisdomTree High Dividend. It trades about 0.14 of its potential returns per unit of risk. WisdomTree High Dividend is currently generating about -0.08 per unit of risk. If you would invest 240,000 in WisdomTree Trust on October 28, 2025 and sell it today you would earn a total of 27,500 from holding WisdomTree Trust or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
WisdomTree Trust vs. WisdomTree High Dividend
Performance |
| Timeline |
| WisdomTree Trust |
| WisdomTree High Dividend |
WisdomTree Trust and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Trust and WisdomTree High
The main advantage of trading using opposite WisdomTree Trust and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Trust position performs unexpectedly, WisdomTree High 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 High will offset losses from the drop in WisdomTree High's long position.| WisdomTree Trust vs. WisdomTree Trust | WisdomTree Trust vs. WisdomTree High Dividend | WisdomTree Trust vs. Vanguard Funds Public | WisdomTree Trust vs. Direxion Daily Junior |
| WisdomTree High vs. WisdomTree Trust | WisdomTree High vs. WisdomTree Trust | WisdomTree High vs. Vanguard Funds Public | WisdomTree High vs. Direxion Daily Junior |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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