Correlation Between WisdomTree Petroleum and WisdomTree Battery
Can any of the company-specific risk be diversified away by investing in both WisdomTree Petroleum and WisdomTree Battery 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 Petroleum and WisdomTree Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Petroleum 2x and WisdomTree Battery Solutions, you can compare the effects of market volatilities on WisdomTree Petroleum and WisdomTree Battery 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 Petroleum with a short position of WisdomTree Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Petroleum and WisdomTree Battery.
Diversification Opportunities for WisdomTree Petroleum and WisdomTree Battery
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Petroleum 2x and WisdomTree Battery Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery and WisdomTree Petroleum 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 Petroleum 2x are associated (or correlated) with WisdomTree Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Battery has no effect on the direction of WisdomTree Petroleum i.e., WisdomTree Petroleum and WisdomTree Battery go up and down completely randomly.
Pair Corralation between WisdomTree Petroleum and WisdomTree Battery
Assuming the 90 days trading horizon WisdomTree Petroleum 2x is expected to generate 2.37 times more return on investment than WisdomTree Battery. However, WisdomTree Petroleum is 2.37 times more volatile than WisdomTree Battery Solutions. It trades about 0.14 of its potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.11 per unit of risk. If you would invest 3,249 in WisdomTree Petroleum 2x on November 25, 2025 and sell it today you would earn a total of 989.00 from holding WisdomTree Petroleum 2x or generate 30.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
WisdomTree Petroleum 2x vs. WisdomTree Battery Solutions
Performance |
| Timeline |
| WisdomTree Petroleum |
| WisdomTree Battery |
WisdomTree Petroleum and WisdomTree Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Petroleum and WisdomTree Battery
The main advantage of trading using opposite WisdomTree Petroleum and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Petroleum position performs unexpectedly, WisdomTree Battery 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 Battery will offset losses from the drop in WisdomTree Battery's long position.| WisdomTree Petroleum vs. WisdomTree Zinc | WisdomTree Petroleum vs. WisdomTree Brent Crude | WisdomTree Petroleum vs. WisdomTree Aluminium 2x | WisdomTree Petroleum vs. WisdomTree Enhanced Commodity |
| WisdomTree Battery vs. WisdomTree Zinc | WisdomTree Battery vs. WisdomTree Brent Crude | WisdomTree Battery vs. WisdomTree Aluminium 2x | WisdomTree Battery vs. WisdomTree Enhanced Commodity |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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