Correlation Between Wahed FTSE and Clockwise Capital

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Can any of the company-specific risk be diversified away by investing in both Wahed FTSE and Clockwise Capital 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 Wahed FTSE and Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahed FTSE USA and Clockwise Capital, you can compare the effects of market volatilities on Wahed FTSE and Clockwise Capital 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 Wahed FTSE with a short position of Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahed FTSE and Clockwise Capital.

Diversification Opportunities for Wahed FTSE and Clockwise Capital

0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Wahed and Clockwise is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wahed FTSE USA and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital and Wahed FTSE 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 Wahed FTSE USA are associated (or correlated) with Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of Wahed FTSE i.e., Wahed FTSE and Clockwise Capital go up and down completely randomly.

Pair Corralation between Wahed FTSE and Clockwise Capital

If you would invest  6,132  in Wahed FTSE USA on November 3, 2025 and sell it today you would earn a total of  189.00  from holding Wahed FTSE USA or generate 3.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.61%
ValuesDaily Returns

Wahed FTSE USA  vs.  Clockwise Capital

 Performance 
       Timeline  
Wahed FTSE USA 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Wahed FTSE USA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Wahed FTSE is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Clockwise Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Clockwise Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Clockwise Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Wahed FTSE and Clockwise Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wahed FTSE and Clockwise Capital

The main advantage of trading using opposite Wahed FTSE and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahed FTSE position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.
The idea behind Wahed FTSE USA and Clockwise Capital 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.
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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