Correlation Between FinVolution and WisdomTree
Can any of the company-specific risk be diversified away by investing in both FinVolution 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 FinVolution and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and WisdomTree, you can compare the effects of market volatilities on FinVolution 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 FinVolution with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and WisdomTree.
Diversification Opportunities for FinVolution and WisdomTree
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FinVolution and WisdomTree is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree and FinVolution 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 FinVolution Group 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 FinVolution i.e., FinVolution and WisdomTree go up and down completely randomly.
Pair Corralation between FinVolution and WisdomTree
Given the investment horizon of 90 days FinVolution Group is expected to under-perform the WisdomTree. In addition to that, FinVolution is 1.89 times more volatile than WisdomTree. It trades about -0.09 of its total potential returns per unit of risk. WisdomTree is currently generating about 0.08 per unit of volatility. If you would invest 1,290 in WisdomTree on October 17, 2025 and sell it today you would earn a total of 103.00 from holding WisdomTree or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FinVolution Group vs. WisdomTree
Performance |
| Timeline |
| FinVolution Group |
| WisdomTree |
FinVolution and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinVolution and WisdomTree
The main advantage of trading using opposite FinVolution and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution 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.| FinVolution vs. 360 Finance | FinVolution vs. Lufax Holding | FinVolution vs. X Financial Class | FinVolution vs. Atlanticus Holdings Corp |
| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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