Correlation Between WisdomTree Efficient and Bitwise Bitcoin
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and Bitwise 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 WisdomTree Efficient and Bitwise Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Efficient Gold and Bitwise Bitcoin ETF, you can compare the effects of market volatilities on WisdomTree Efficient and Bitwise 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 WisdomTree Efficient with a short position of Bitwise Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and Bitwise Bitcoin.
Diversification Opportunities for WisdomTree Efficient and Bitwise Bitcoin
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Bitwise is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and Bitwise Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Bitcoin ETF and WisdomTree Efficient 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 Efficient Gold are associated (or correlated) with Bitwise Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Bitcoin ETF has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and Bitwise Bitcoin go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and Bitwise Bitcoin
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 1.66 times more return on investment than Bitwise Bitcoin. However, WisdomTree Efficient is 1.66 times more volatile than Bitwise Bitcoin ETF. It trades about 0.15 of its potential returns per unit of risk. Bitwise Bitcoin ETF is currently generating about 0.22 per unit of risk. If you would invest 10,026 in WisdomTree Efficient Gold on October 22, 2025 and sell it today you would earn a total of 864.00 from holding WisdomTree Efficient Gold or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. Bitwise Bitcoin ETF
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| Bitwise Bitcoin ETF |
WisdomTree Efficient and Bitwise Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and Bitwise Bitcoin
The main advantage of trading using opposite WisdomTree Efficient and Bitwise Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, Bitwise 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 Bitwise Bitcoin will offset losses from the drop in Bitwise Bitcoin's long position.| WisdomTree Efficient vs. VanEck India Growth | WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology |
| Bitwise Bitcoin vs. ARK 21Shares Bitcoin | Bitwise Bitcoin vs. BNY Mellon Large | Bitwise Bitcoin vs. John Hancock Multifactor | Bitwise Bitcoin vs. Fidelity Covington Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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