Correlation Between Infinity Natural and WisdomTree European
Can any of the company-specific risk be diversified away by investing in both Infinity Natural and WisdomTree European 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 Infinity Natural and WisdomTree European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Natural Resources and WisdomTree European Opportunities, you can compare the effects of market volatilities on Infinity Natural and WisdomTree European 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 Infinity Natural with a short position of WisdomTree European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Natural and WisdomTree European.
Diversification Opportunities for Infinity Natural and WisdomTree European
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Infinity and WisdomTree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Natural Resources and WisdomTree European Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree European and Infinity Natural 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 Infinity Natural Resources are associated (or correlated) with WisdomTree European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree European has no effect on the direction of Infinity Natural i.e., Infinity Natural and WisdomTree European go up and down completely randomly.
Pair Corralation between Infinity Natural and WisdomTree European
Considering the 90-day investment horizon Infinity Natural Resources is expected to generate 3.28 times more return on investment than WisdomTree European. However, Infinity Natural is 3.28 times more volatile than WisdomTree European Opportunities. It trades about 0.1 of its potential returns per unit of risk. WisdomTree European Opportunities is currently generating about 0.16 per unit of risk. If you would invest 1,482 in Infinity Natural Resources on December 5, 2025 and sell it today you would earn a total of 232.00 from holding Infinity Natural Resources or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Natural Resources vs. WisdomTree European Opportunit
Performance |
| Timeline |
| Infinity Natural Res |
| WisdomTree European |
Infinity Natural and WisdomTree European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Natural and WisdomTree European
The main advantage of trading using opposite Infinity Natural and WisdomTree European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Natural position performs unexpectedly, WisdomTree European 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 WisdomTree European will offset losses from the drop in WisdomTree European's long position.| Infinity Natural vs. Amplify Energy Corp | Infinity Natural vs. Ring Energy | Infinity Natural vs. Imperial Petroleum | Infinity Natural vs. Kolibri Global Energy |
| WisdomTree European vs. iShares MSCI Global | WisdomTree European vs. iShares Digital Infrastructure | WisdomTree European vs. Knowledge Leaders Developed | WisdomTree European vs. Invesco Raymond James |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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