Correlation Between FinEx Physically and WisdomTree Physical
Can any of the company-specific risk be diversified away by investing in both FinEx Physically and WisdomTree Physical 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 Physical 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 Physical Ethereum, you can compare the effects of market volatilities on FinEx Physically and WisdomTree Physical 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 Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinEx Physically and WisdomTree Physical.
Diversification Opportunities for FinEx Physically and WisdomTree Physical
-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 Physical Ethereum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Physical 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 Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Physical has no effect on the direction of FinEx Physically i.e., FinEx Physically and WisdomTree Physical go up and down completely randomly.
Pair Corralation between FinEx Physically and WisdomTree Physical
Assuming the 90 days trading horizon FinEx Physically is expected to generate 1.72 times less return on investment than WisdomTree Physical. But when comparing it to its historical volatility, FinEx Physically Gold is 6.16 times less risky than WisdomTree Physical. It trades about 0.42 of its potential returns per unit of risk. WisdomTree Physical Ethereum is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,697 in WisdomTree Physical Ethereum on September 30, 2025 and sell it today you would earn a total of 194.00 from holding WisdomTree Physical Ethereum or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
FinEx Physically Gold vs. WisdomTree Physical Ethereum
Performance |
| Timeline |
| FinEx Physically Gold |
| WisdomTree Physical |
FinEx Physically and WisdomTree Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinEx Physically and WisdomTree Physical
The main advantage of trading using opposite FinEx Physically and WisdomTree Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinEx Physically position performs unexpectedly, WisdomTree Physical 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 Physical will offset losses from the drop in WisdomTree Physical'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 Physical vs. Vanguard SP 500 | WisdomTree Physical vs. SPDR Dow Jones | WisdomTree Physical vs. iShares Core MSCI | WisdomTree Physical 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |