Correlation Between Plug Power and WisdomTree BioRevolution
Can any of the company-specific risk be diversified away by investing in both Plug Power and WisdomTree BioRevolution 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 BioRevolution 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 BioRevolution, you can compare the effects of market volatilities on Plug Power and WisdomTree BioRevolution 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 BioRevolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and WisdomTree BioRevolution.
Diversification Opportunities for Plug Power and WisdomTree BioRevolution
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plug and WisdomTree is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and WisdomTree BioRevolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree BioRevolution 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 BioRevolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree BioRevolution has no effect on the direction of Plug Power i.e., Plug Power and WisdomTree BioRevolution go up and down completely randomly.
Pair Corralation between Plug Power and WisdomTree BioRevolution
Given the investment horizon of 90 days Plug Power is expected to under-perform the WisdomTree BioRevolution. In addition to that, Plug Power is 3.81 times more volatile than WisdomTree BioRevolution. It trades about -0.05 of its total potential returns per unit of risk. WisdomTree BioRevolution is currently generating about 0.15 per unit of volatility. If you would invest 1,589 in WisdomTree BioRevolution on November 2, 2025 and sell it today you would earn a total of 209.00 from holding WisdomTree BioRevolution or generate 13.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. WisdomTree BioRevolution
Performance |
| Timeline |
| Plug Power |
| WisdomTree BioRevolution |
Plug Power and WisdomTree BioRevolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and WisdomTree BioRevolution
The main advantage of trading using opposite Plug Power and WisdomTree BioRevolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, WisdomTree BioRevolution 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 BioRevolution will offset losses from the drop in WisdomTree BioRevolution'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 BioRevolution vs. Global X SP | WisdomTree BioRevolution vs. Themes Cash Flow | WisdomTree BioRevolution vs. ETF Managers Group | WisdomTree BioRevolution vs. VanEck ETF Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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