Correlation Between WisdomTree Continuous and WisdomTree Bloomberg
Can any of the company-specific risk be diversified away by investing in both WisdomTree Continuous and WisdomTree Bloomberg 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 WisdomTree Continuous and WisdomTree Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Continuous Commodity and WisdomTree Bloomberg Dollar, you can compare the effects of market volatilities on WisdomTree Continuous and WisdomTree Bloomberg 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 WisdomTree Continuous with a short position of WisdomTree Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Continuous and WisdomTree Bloomberg.
Diversification Opportunities for WisdomTree Continuous and WisdomTree Bloomberg
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and WisdomTree is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Continuous Commodit and WisdomTree Bloomberg Dollar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Bloomberg and WisdomTree Continuous 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 WisdomTree Continuous Commodity are associated (or correlated) with WisdomTree Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Bloomberg has no effect on the direction of WisdomTree Continuous i.e., WisdomTree Continuous and WisdomTree Bloomberg go up and down completely randomly.
Pair Corralation between WisdomTree Continuous and WisdomTree Bloomberg
Considering the 90-day investment horizon WisdomTree Continuous Commodity is expected to generate 4.4 times more return on investment than WisdomTree Bloomberg. However, WisdomTree Continuous is 4.4 times more volatile than WisdomTree Bloomberg Dollar. It trades about 0.07 of its potential returns per unit of risk. WisdomTree Bloomberg Dollar is currently generating about -0.04 per unit of risk. If you would invest 2,064 in WisdomTree Continuous Commodity on November 8, 2025 and sell it today you would earn a total of 110.00 from holding WisdomTree Continuous Commodity or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Continuous Commodit vs. WisdomTree Bloomberg Dollar
Performance |
| Timeline |
| WisdomTree Continuous |
| WisdomTree Bloomberg |
WisdomTree Continuous and WisdomTree Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Continuous and WisdomTree Bloomberg
The main advantage of trading using opposite WisdomTree Continuous and WisdomTree Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Continuous position performs unexpectedly, WisdomTree Bloomberg 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 Bloomberg will offset losses from the drop in WisdomTree Bloomberg's long position.| WisdomTree Continuous vs. VanEck Natural Resources | WisdomTree Continuous vs. Direxion Auspice Broad | WisdomTree Continuous vs. Ballast SmallMid Cap | WisdomTree Continuous vs. AIM ETF Products |
| WisdomTree Bloomberg vs. Invesco DB Dollar | WisdomTree Bloomberg vs. Franklin Liberty Ultra | WisdomTree Bloomberg vs. Direxion Daily CSI | WisdomTree Bloomberg vs. WisdomTree Efficient Gold |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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