Correlation Between WisdomTree Efficient and SSGA Active
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and SSGA Active 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 SSGA Active 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 SSGA Active Trust, you can compare the effects of market volatilities on WisdomTree Efficient and SSGA Active 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 SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and SSGA Active.
Diversification Opportunities for WisdomTree Efficient and SSGA Active
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and SSGA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and SSGA Active Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA Active Trust 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 SSGA Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA Active Trust has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and SSGA Active go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and SSGA Active
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 26.43 times more return on investment than SSGA Active. However, WisdomTree Efficient is 26.43 times more volatile than SSGA Active Trust. It trades about 0.18 of its potential returns per unit of risk. SSGA Active Trust is currently generating about 0.18 per unit of risk. If you would invest 8,944 in WisdomTree Efficient Gold on December 1, 2025 and sell it today you would earn a total of 5,055 from holding WisdomTree Efficient Gold or generate 56.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. SSGA Active Trust
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| SSGA Active Trust |
WisdomTree Efficient and SSGA Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and SSGA Active
The main advantage of trading using opposite WisdomTree Efficient and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, SSGA Active 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 SSGA Active will offset losses from the drop in SSGA Active'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
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