Correlation Between Bitwise Ethereum and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Bitwise Ethereum and WisdomTree International 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 Bitwise Ethereum and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Ethereum ETF and WisdomTree International High, you can compare the effects of market volatilities on Bitwise Ethereum and WisdomTree International 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 Bitwise Ethereum with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Ethereum and WisdomTree International.
Diversification Opportunities for Bitwise Ethereum and WisdomTree International
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitwise and WisdomTree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Ethereum ETF and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Bitwise 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 Bitwise Ethereum ETF are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Bitwise Ethereum i.e., Bitwise Ethereum and WisdomTree International go up and down completely randomly.
Pair Corralation between Bitwise Ethereum and WisdomTree International
Given the investment horizon of 90 days Bitwise Ethereum ETF is expected to generate 6.54 times more return on investment than WisdomTree International. However, Bitwise Ethereum is 6.54 times more volatile than WisdomTree International High. It trades about 0.23 of its potential returns per unit of risk. WisdomTree International High is currently generating about 0.38 per unit of risk. If you would invest 2,131 in Bitwise Ethereum ETF on October 21, 2025 and sell it today you would earn a total of 226.00 from holding Bitwise Ethereum ETF or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Ethereum ETF vs. WisdomTree International High
Performance |
| Timeline |
| Bitwise Ethereum ETF |
| WisdomTree International |
Bitwise Ethereum and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Ethereum and WisdomTree International
The main advantage of trading using opposite Bitwise Ethereum and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Ethereum position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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