Correlation Between Fastly and WisdomTree Inflation
Can any of the company-specific risk be diversified away by investing in both Fastly and WisdomTree Inflation 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 Inflation 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 Inflation Plus, you can compare the effects of market volatilities on Fastly and WisdomTree Inflation 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 Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and WisdomTree Inflation.
Diversification Opportunities for Fastly and WisdomTree Inflation
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fastly and WisdomTree is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Class A and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus 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 Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of Fastly i.e., Fastly and WisdomTree Inflation go up and down completely randomly.
Pair Corralation between Fastly and WisdomTree Inflation
Given the investment horizon of 90 days Fastly Class A is expected to under-perform the WisdomTree Inflation. In addition to that, Fastly is 3.03 times more volatile than WisdomTree Inflation Plus. It trades about -0.18 of its total potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.04 per unit of volatility. If you would invest 3,201 in WisdomTree Inflation Plus on November 8, 2025 and sell it today you would earn a total of 69.00 from holding WisdomTree Inflation Plus or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastly Class A vs. WisdomTree Inflation Plus
Performance |
| Timeline |
| Fastly Class A |
| WisdomTree Inflation Plus |
Fastly and WisdomTree Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastly and WisdomTree Inflation
The main advantage of trading using opposite Fastly and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, WisdomTree Inflation 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 Inflation will offset losses from the drop in WisdomTree Inflation's long position.The idea behind Fastly Class A and WisdomTree Inflation Plus 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 Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation vs. Tidal Trust II |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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