Correlation Between WisdomTree Physical and SSGA SPDR
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and SSGA SPDR 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 Physical and SSGA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Physical Gold and SSGA SPDR ETFS, you can compare the effects of market volatilities on WisdomTree Physical and SSGA SPDR 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 Physical with a short position of SSGA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and SSGA SPDR.
Diversification Opportunities for WisdomTree Physical and SSGA SPDR
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and SSGA is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Gold and SSGA SPDR ETFS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA SPDR ETFS and WisdomTree Physical 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 Physical Gold are associated (or correlated) with SSGA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA SPDR ETFS has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and SSGA SPDR go up and down completely randomly.
Pair Corralation between WisdomTree Physical and SSGA SPDR
Assuming the 90 days trading horizon WisdomTree Physical Gold is expected to generate 3.06 times more return on investment than SSGA SPDR. However, WisdomTree Physical is 3.06 times more volatile than SSGA SPDR ETFS. It trades about 0.15 of its potential returns per unit of risk. SSGA SPDR ETFS is currently generating about 0.08 per unit of risk. If you would invest 32,774 in WisdomTree Physical Gold on November 20, 2025 and sell it today you would earn a total of 5,558 from holding WisdomTree Physical Gold or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Gold vs. SSGA SPDR ETFS
Performance |
| Timeline |
| WisdomTree Physical Gold |
| SSGA SPDR ETFS |
WisdomTree Physical and SSGA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and SSGA SPDR
The main advantage of trading using opposite WisdomTree Physical and SSGA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, SSGA SPDR 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 SSGA SPDR will offset losses from the drop in SSGA SPDR's long position.| WisdomTree Physical vs. iShares Core MSCI | WisdomTree Physical vs. iShares Core MSCI | WisdomTree Physical vs. Vanguard FTSE All World | WisdomTree Physical vs. Vanguard FTSE Developed |
| SSGA SPDR vs. Vanguard FTSE All World | SSGA SPDR vs. iShares MSCI World | SSGA SPDR vs. Vanguard FTSE Developed | SSGA SPDR vs. VanEck Sustainable World |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |