Correlation Between WisdomTree Ethereum and 21Shares Bitcoin
Can any of the company-specific risk be diversified away by investing in both WisdomTree Ethereum and 21Shares Bitcoin 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 Ethereum and 21Shares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Ethereum ETC and 21Shares Bitcoin Cash, you can compare the effects of market volatilities on WisdomTree Ethereum and 21Shares Bitcoin 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 Ethereum with a short position of 21Shares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Ethereum and 21Shares Bitcoin.
Diversification Opportunities for WisdomTree Ethereum and 21Shares Bitcoin
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and 21Shares is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Ethereum ETC and 21Shares Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitcoin Cash and WisdomTree Ethereum 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 Ethereum ETC are associated (or correlated) with 21Shares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitcoin Cash has no effect on the direction of WisdomTree Ethereum i.e., WisdomTree Ethereum and 21Shares Bitcoin go up and down completely randomly.
Pair Corralation between WisdomTree Ethereum and 21Shares Bitcoin
Assuming the 90 days trading horizon WisdomTree Ethereum ETC is expected to under-perform the 21Shares Bitcoin. In addition to that, WisdomTree Ethereum is 1.05 times more volatile than 21Shares Bitcoin Cash. It trades about -0.14 of its total potential returns per unit of risk. 21Shares Bitcoin Cash is currently generating about 0.01 per unit of volatility. If you would invest 2,159 in 21Shares Bitcoin Cash on November 29, 2025 and sell it today you would lose (51.00) from holding 21Shares Bitcoin Cash or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.31% |
| Values | Daily Returns |
WisdomTree Ethereum ETC vs. 21Shares Bitcoin Cash
Performance |
| Timeline |
| WisdomTree Ethereum ETC |
| 21Shares Bitcoin Cash |
WisdomTree Ethereum and 21Shares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Ethereum and 21Shares Bitcoin
The main advantage of trading using opposite WisdomTree Ethereum and 21Shares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Ethereum position performs unexpectedly, 21Shares Bitcoin 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 21Shares Bitcoin will offset losses from the drop in 21Shares Bitcoin's long position.| WisdomTree Ethereum vs. iShares MSCI Japan | WisdomTree Ethereum vs. iShares Corp Bond | WisdomTree Ethereum vs. iShares Global High | WisdomTree Ethereum vs. SPDR MSCI Europe |
| 21Shares Bitcoin vs. 21Shares Ripple XRP | 21Shares Bitcoin vs. Grayscale Bitcoin Cash | 21Shares Bitcoin vs. 21Shares Ethereum Staking | 21Shares Bitcoin vs. 21Shares Crypto Basket |
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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