Correlation Between EXT and WisdomTree
Can any of the company-specific risk be diversified away by investing in both EXT and WisdomTree 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 EXT and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXT and WisdomTree, you can compare the effects of market volatilities on EXT and WisdomTree 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 EXT with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXT and WisdomTree.
Diversification Opportunities for EXT and WisdomTree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EXT and WisdomTree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EXT and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree and EXT 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 EXT are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree has no effect on the direction of EXT i.e., EXT and WisdomTree go up and down completely randomly.
Pair Corralation between EXT and WisdomTree
If you would invest (100.00) in WisdomTree on November 1, 2025 and sell it today you would earn a total of 100.00 from holding WisdomTree or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EXT vs. WisdomTree
Performance |
| Timeline |
| EXT |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| WisdomTree |
Risk-Adjusted Performance
Weakest
Weak | Strong |
EXT and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXT and WisdomTree
The main advantage of trading using opposite EXT and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXT position performs unexpectedly, WisdomTree 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 will offset losses from the drop in WisdomTree's long position.| EXT vs. WisdomTree Trust | EXT vs. Defiance SP 500 | EXT vs. WisdomTree Japan Hedged | EXT vs. Invesco Next Gen |
| WisdomTree vs. ABLD | WisdomTree vs. Unusual Whales Subversive | WisdomTree vs. International Drawdown Managed | WisdomTree vs. Global X Data |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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