Correlation Between WisdomTree Platinum and WisdomTree Enhanced
Can any of the company-specific risk be diversified away by investing in both WisdomTree Platinum and WisdomTree Enhanced 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 Platinum and WisdomTree Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Platinum 2x and WisdomTree Enhanced Commodity, you can compare the effects of market volatilities on WisdomTree Platinum and WisdomTree Enhanced 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 Platinum with a short position of WisdomTree Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Platinum and WisdomTree Enhanced.
Diversification Opportunities for WisdomTree Platinum and WisdomTree Enhanced
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Platinum 2x and WisdomTree Enhanced Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Enhanced and WisdomTree Platinum 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 Platinum 2x are associated (or correlated) with WisdomTree Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Enhanced has no effect on the direction of WisdomTree Platinum i.e., WisdomTree Platinum and WisdomTree Enhanced go up and down completely randomly.
Pair Corralation between WisdomTree Platinum and WisdomTree Enhanced
Assuming the 90 days trading horizon WisdomTree Platinum 2x is expected to generate 9.28 times more return on investment than WisdomTree Enhanced. However, WisdomTree Platinum is 9.28 times more volatile than WisdomTree Enhanced Commodity. It trades about 0.11 of its potential returns per unit of risk. WisdomTree Enhanced Commodity is currently generating about 0.13 per unit of risk. If you would invest 382.00 in WisdomTree Platinum 2x on November 10, 2025 and sell it today you would earn a total of 150.00 from holding WisdomTree Platinum 2x or generate 39.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Platinum 2x vs. WisdomTree Enhanced Commodity
Performance |
| Timeline |
| WisdomTree Platinum |
| WisdomTree Enhanced |
WisdomTree Platinum and WisdomTree Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Platinum and WisdomTree Enhanced
The main advantage of trading using opposite WisdomTree Platinum and WisdomTree Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Platinum position performs unexpectedly, WisdomTree Enhanced 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 Enhanced will offset losses from the drop in WisdomTree Enhanced's long position.| WisdomTree Platinum vs. GraniteShares 3x Long | WisdomTree Platinum vs. Leverage Shares 2x | WisdomTree Platinum vs. Leverage Shares 3x | WisdomTree Platinum vs. Leverage Shares 3x |
| WisdomTree Enhanced vs. GraniteShares 3x Long | WisdomTree Enhanced vs. GraniteShares 3x Long | WisdomTree Enhanced vs. Leverage Shares 3x | WisdomTree Enhanced vs. Leverage Shares 3x |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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