Correlation Between FinEx Physically and WisdomTree Bitcoin
Can any of the company-specific risk be diversified away by investing in both FinEx Physically and WisdomTree Bitcoin 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 FinEx Physically and WisdomTree Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinEx Physically Gold and WisdomTree Bitcoin, you can compare the effects of market volatilities on FinEx Physically and WisdomTree Bitcoin 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 FinEx Physically with a short position of WisdomTree Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinEx Physically and WisdomTree Bitcoin.
Diversification Opportunities for FinEx Physically and WisdomTree Bitcoin
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FinEx and WisdomTree is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FinEx Physically Gold and WisdomTree Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Bitcoin and FinEx Physically 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 FinEx Physically Gold are associated (or correlated) with WisdomTree Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Bitcoin has no effect on the direction of FinEx Physically i.e., FinEx Physically and WisdomTree Bitcoin go up and down completely randomly.
Pair Corralation between FinEx Physically and WisdomTree Bitcoin
Assuming the 90 days trading horizon FinEx Physically is expected to generate 1.09 times less return on investment than WisdomTree Bitcoin. But when comparing it to its historical volatility, FinEx Physically Gold is 3.44 times less risky than WisdomTree Bitcoin. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Bitcoin is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,491 in WisdomTree Bitcoin on September 30, 2025 and sell it today you would earn a total of 598.00 from holding WisdomTree Bitcoin or generate 40.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
FinEx Physically Gold vs. WisdomTree Bitcoin
Performance |
| Timeline |
| FinEx Physically Gold |
| WisdomTree Bitcoin |
FinEx Physically and WisdomTree Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinEx Physically and WisdomTree Bitcoin
The main advantage of trading using opposite FinEx Physically and WisdomTree Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinEx Physically position performs unexpectedly, WisdomTree Bitcoin 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 Bitcoin will offset losses from the drop in WisdomTree Bitcoin's long position.| FinEx Physically vs. LG Russell 2000 | FinEx Physically vs. iShares MSCI EM | FinEx Physically vs. VanEck Multi Asset Growth | FinEx Physically vs. iShares III Public |
| WisdomTree Bitcoin vs. Vanguard SP 500 | WisdomTree Bitcoin vs. SPDR Dow Jones | WisdomTree Bitcoin vs. iShares Core MSCI | WisdomTree Bitcoin vs. iShares 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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