Correlation Between OneAscent Small and WisdomTree Inflation

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

Diversification Opportunities for OneAscent Small and WisdomTree Inflation

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between OneAscent and WisdomTree is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent Small Cap and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus and OneAscent Small 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 OneAscent Small Cap are associated (or correlated) with WisdomTree Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of OneAscent Small i.e., OneAscent Small and WisdomTree Inflation go up and down completely randomly.

Pair Corralation between OneAscent Small and WisdomTree Inflation

Given the investment horizon of 90 days OneAscent Small Cap is expected to generate 0.88 times more return on investment than WisdomTree Inflation. However, OneAscent Small Cap is 1.14 times less risky than WisdomTree Inflation. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.04 per unit of risk. If you would invest  2,865  in OneAscent Small Cap on November 8, 2025 and sell it today you would earn a total of  141.80  from holding OneAscent Small Cap or generate 4.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.36%
ValuesDaily Returns

OneAscent Small Cap  vs.  WisdomTree Inflation Plus

 Performance 
       Timeline  
OneAscent Small Cap 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent Small Cap are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, OneAscent Small is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
WisdomTree Inflation Plus 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Inflation Plus are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, WisdomTree Inflation is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

OneAscent Small and WisdomTree Inflation Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OneAscent Small and WisdomTree Inflation

The main advantage of trading using opposite OneAscent Small and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent Small position performs unexpectedly, WisdomTree Inflation 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 Inflation will offset losses from the drop in WisdomTree Inflation's long position.
The idea behind OneAscent Small Cap and WisdomTree Inflation Plus 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.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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