Correlation Between Plug Power and WisdomTree Inflation
Can any of the company-specific risk be diversified away by investing in both Plug Power 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 Plug Power and WisdomTree Inflation 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 Inflation Plus, you can compare the effects of market volatilities on Plug Power 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 Plug Power with a short position of WisdomTree Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and WisdomTree Inflation.
Diversification Opportunities for Plug Power and WisdomTree Inflation
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plug and WisdomTree is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power 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 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 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 Plug Power i.e., Plug Power and WisdomTree Inflation go up and down completely randomly.
Pair Corralation between Plug Power and WisdomTree Inflation
Given the investment horizon of 90 days Plug Power is expected to under-perform the WisdomTree Inflation. In addition to that, Plug Power is 5.24 times more volatile than WisdomTree Inflation Plus. It trades about -0.06 of its total potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.12 per unit of volatility. If you would invest 3,183 in WisdomTree Inflation Plus on November 7, 2025 and sell it today you would earn a total of 231.00 from holding WisdomTree Inflation Plus or generate 7.26% 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 Inflation Plus
Performance |
| Timeline |
| Plug Power |
| WisdomTree Inflation Plus |
Plug Power and WisdomTree Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and WisdomTree Inflation
The main advantage of trading using opposite Plug Power and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power 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.| Plug Power vs. GrafTech International | Plug Power vs. Hayward Holdings | Plug Power vs. Amprius Technologies | Plug Power vs. Eos Energy Enterprises |
| WisdomTree Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation vs. Tidal Trust II |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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