Correlation Between Plug Power and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Plug Power and WisdomTree International 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 Plug Power and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and WisdomTree International Efficient, you can compare the effects of market volatilities on Plug Power and WisdomTree International 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 Plug Power with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and WisdomTree International.
Diversification Opportunities for Plug Power and WisdomTree International
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Plug and WisdomTree is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and WisdomTree International Effic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Plug Power 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 Plug Power are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Plug Power i.e., Plug Power and WisdomTree International go up and down completely randomly.
Pair Corralation between Plug Power and WisdomTree International
Given the investment horizon of 90 days Plug Power is expected to under-perform the WisdomTree International. In addition to that, Plug Power is 7.31 times more volatile than WisdomTree International Efficient. It trades about -0.02 of its total potential returns per unit of risk. WisdomTree International Efficient is currently generating about 0.17 per unit of volatility. If you would invest 4,283 in WisdomTree International Efficient on October 31, 2025 and sell it today you would earn a total of 322.00 from holding WisdomTree International Efficient or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. WisdomTree International Effic
Performance |
| Timeline |
| Plug Power |
| WisdomTree International |
Plug Power and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and WisdomTree International
The main advantage of trading using opposite Plug Power and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| Plug Power vs. GrafTech International | Plug Power vs. Hayward Holdings | Plug Power vs. Amprius Technologies | Plug Power vs. Eos Energy Enterprises |
| WisdomTree International vs. 6 Meridian Mega | WisdomTree International vs. iShares MSCI Poland | WisdomTree International vs. Xtrackers MSCI Japan | WisdomTree International vs. American Century Quality |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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