Correlation Between WisdomTree Efficient and Bitwise Ethereum

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Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and Bitwise Ethereum 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 Ethereum 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 Ethereum ETF, you can compare the effects of market volatilities on WisdomTree Efficient and Bitwise Ethereum 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 Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and Bitwise Ethereum.

Diversification Opportunities for WisdomTree Efficient and Bitwise Ethereum

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between WisdomTree and Bitwise is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and Bitwise Ethereum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Ethereum 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 Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Ethereum ETF has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and Bitwise Ethereum go up and down completely randomly.

Pair Corralation between WisdomTree Efficient and Bitwise Ethereum

Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 0.72 times more return on investment than Bitwise Ethereum. However, WisdomTree Efficient Gold is 1.39 times less risky than Bitwise Ethereum. It trades about 0.37 of its potential returns per unit of risk. Bitwise Ethereum ETF is currently generating about 0.08 per unit of risk. If you would invest  7,800  in WisdomTree Efficient Gold on October 22, 2025 and sell it today you would earn a total of  3,964  from holding WisdomTree Efficient Gold or generate 50.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

WisdomTree Efficient Gold  vs.  Bitwise Ethereum ETF

 Performance 
       Timeline  
WisdomTree Efficient Gold 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Efficient Gold are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, WisdomTree Efficient displayed solid returns over the last few months and may actually be approaching a breakup point.
Bitwise Ethereum ETF 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Bitwise Ethereum ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's technical indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

WisdomTree Efficient and Bitwise Ethereum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Efficient and Bitwise Ethereum

The main advantage of trading using opposite WisdomTree Efficient and Bitwise Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, Bitwise Ethereum 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 Ethereum will offset losses from the drop in Bitwise Ethereum's long position.
The idea behind WisdomTree Efficient Gold and Bitwise Ethereum ETF 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.
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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