Correlation Between WisdomTree Efficient and Main Thematic
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and Main Thematic 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 Main Thematic 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 Main Thematic Innovation, you can compare the effects of market volatilities on WisdomTree Efficient and Main Thematic 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 Main Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and Main Thematic.
Diversification Opportunities for WisdomTree Efficient and Main Thematic
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and Main is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and Main Thematic Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Thematic Innovation 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 Main Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Thematic Innovation has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and Main Thematic go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and Main Thematic
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 3.21 times more return on investment than Main Thematic. However, WisdomTree Efficient is 3.21 times more volatile than Main Thematic Innovation. It trades about 0.16 of its potential returns per unit of risk. Main Thematic Innovation is currently generating about -0.07 per unit of risk. If you would invest 7,860 in WisdomTree Efficient Gold on November 16, 2025 and sell it today you would earn a total of 3,704 from holding WisdomTree Efficient Gold or generate 47.12% 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. Main Thematic Innovation
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| Main Thematic Innovation |
WisdomTree Efficient and Main Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and Main Thematic
The main advantage of trading using opposite WisdomTree Efficient and Main Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, Main Thematic 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 Main Thematic will offset losses from the drop in Main Thematic's long position.| WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology | WisdomTree Efficient vs. 2023 EFT Series |
| Main Thematic vs. Innovator Nasdaq 100 Power | Main Thematic vs. Innovator SP 500 | Main Thematic vs. Direxion Daily SP | Main Thematic vs. Innovator 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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