Correlation Between Fastly and WisdomTree Europe
Can any of the company-specific risk be diversified away by investing in both Fastly and WisdomTree Europe 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 Fastly and WisdomTree Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastly Class A and WisdomTree Europe Hedged, you can compare the effects of market volatilities on Fastly and WisdomTree Europe 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 Fastly with a short position of WisdomTree Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and WisdomTree Europe.
Diversification Opportunities for Fastly and WisdomTree Europe
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fastly and WisdomTree is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Class A and WisdomTree Europe Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe Hedged and Fastly 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 Fastly Class A are associated (or correlated) with WisdomTree Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe Hedged has no effect on the direction of Fastly i.e., Fastly and WisdomTree Europe go up and down completely randomly.
Pair Corralation between Fastly and WisdomTree Europe
Given the investment horizon of 90 days Fastly Class A is expected to generate 15.88 times more return on investment than WisdomTree Europe. However, Fastly is 15.88 times more volatile than WisdomTree Europe Hedged. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Europe Hedged is currently generating about 0.31 per unit of risk. If you would invest 1,042 in Fastly Class A on November 15, 2025 and sell it today you would earn a total of 784.00 from holding Fastly Class A or generate 75.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.97% |
| Values | Daily Returns |
Fastly Class A vs. WisdomTree Europe Hedged
Performance |
| Timeline |
| Fastly Class A |
| WisdomTree Europe Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
Fastly and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastly and WisdomTree Europe
The main advantage of trading using opposite Fastly and WisdomTree Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, WisdomTree Europe 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 Europe will offset losses from the drop in WisdomTree Europe's long position.The idea behind Fastly Class A and WisdomTree Europe Hedged pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WisdomTree Europe vs. iShares MSCI Global | WisdomTree Europe vs. iShares Digital Infrastructure | WisdomTree Europe vs. Knowledge Leaders Developed | WisdomTree Europe vs. Invesco Raymond James |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |