Correlation Between Tidal Trust and WisdomTree MidCap
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and WisdomTree MidCap 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 Tidal Trust and WisdomTree MidCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and WisdomTree MidCap Dividend, you can compare the effects of market volatilities on Tidal Trust and WisdomTree MidCap 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 Tidal Trust with a short position of WisdomTree MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and WisdomTree MidCap.
Diversification Opportunities for Tidal Trust and WisdomTree MidCap
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tidal and WisdomTree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and WisdomTree MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree MidCap and Tidal Trust 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 Tidal Trust II are associated (or correlated) with WisdomTree MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree MidCap has no effect on the direction of Tidal Trust i.e., Tidal Trust and WisdomTree MidCap go up and down completely randomly.
Pair Corralation between Tidal Trust and WisdomTree MidCap
Considering the 90-day investment horizon Tidal Trust II is expected to generate 17.04 times more return on investment than WisdomTree MidCap. However, Tidal Trust is 17.04 times more volatile than WisdomTree MidCap Dividend. It trades about 0.03 of its potential returns per unit of risk. WisdomTree MidCap Dividend is currently generating about 0.06 per unit of risk. If you would invest 1,735 in Tidal Trust II on October 21, 2025 and sell it today you would lose (437.00) from holding Tidal Trust II or give up 25.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 49.6% |
| Values | Daily Returns |
Tidal Trust II vs. WisdomTree MidCap Dividend
Performance |
| Timeline |
| Tidal Trust II |
| WisdomTree MidCap |
Tidal Trust and WisdomTree MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and WisdomTree MidCap
The main advantage of trading using opposite Tidal Trust and WisdomTree MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, WisdomTree MidCap 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 MidCap will offset losses from the drop in WisdomTree MidCap's long position.| Tidal Trust vs. YieldMax Short NVDA | Tidal Trust vs. YieldMax DIS Option | Tidal Trust vs. Tradr 2X Long | Tidal Trust vs. Defiance Daily Target |
| WisdomTree MidCap vs. WisdomTree Emerging Markets | WisdomTree MidCap vs. WisdomTree Japan Hedged | WisdomTree MidCap vs. iShares Financials ETF | WisdomTree MidCap vs. iShares Exponential Technologies |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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