Correlation Between EXT and WisdomTree Trust
Can any of the company-specific risk be diversified away by investing in both EXT and WisdomTree Trust 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 Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXT and WisdomTree Trust , you can compare the effects of market volatilities on EXT and WisdomTree Trust 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 Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXT and WisdomTree Trust.
Diversification Opportunities for EXT and WisdomTree Trust
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 Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Trust has no effect on the direction of EXT i.e., EXT and WisdomTree Trust go up and down completely randomly.
Pair Corralation between EXT and WisdomTree Trust
If you would invest 8,932 in WisdomTree Trust on November 4, 2025 and sell it today you would earn a total of 706.00 from holding WisdomTree Trust or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EXT vs. WisdomTree Trust
Performance |
| Timeline |
| EXT |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| WisdomTree Trust |
EXT and WisdomTree Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXT and WisdomTree Trust
The main advantage of trading using opposite EXT and WisdomTree Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXT position performs unexpectedly, WisdomTree Trust 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 Trust will offset losses from the drop in WisdomTree Trust's long position.| EXT vs. WisdomTree Trust | EXT vs. Defiance SP 500 | EXT vs. WisdomTree Japan Hedged | EXT vs. Invesco Next Gen |
| WisdomTree Trust vs. Fidelity Small Mid Factor | WisdomTree Trust vs. ProShares SP MidCap | WisdomTree Trust vs. iShares Russell 2500 | WisdomTree Trust vs. Invesco SP 500 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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