Correlation Between Rocket Companies and WisdomTree Physical
Can any of the company-specific risk be diversified away by investing in both Rocket Companies and WisdomTree Physical 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 Rocket Companies and WisdomTree Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket Companies and WisdomTree Physical Bitcoin, you can compare the effects of market volatilities on Rocket Companies and WisdomTree Physical 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 Rocket Companies with a short position of WisdomTree Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Companies and WisdomTree Physical.
Diversification Opportunities for Rocket Companies and WisdomTree Physical
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rocket and WisdomTree is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and WisdomTree Physical Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Physical and Rocket Companies 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 Rocket Companies are associated (or correlated) with WisdomTree Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Physical has no effect on the direction of Rocket Companies i.e., Rocket Companies and WisdomTree Physical go up and down completely randomly.
Pair Corralation between Rocket Companies and WisdomTree Physical
Considering the 90-day investment horizon Rocket Companies is expected to generate 1.23 times more return on investment than WisdomTree Physical. However, Rocket Companies is 1.23 times more volatile than WisdomTree Physical Bitcoin. It trades about 0.07 of its potential returns per unit of risk. WisdomTree Physical Bitcoin is currently generating about -0.16 per unit of risk. If you would invest 1,642 in Rocket Companies on November 17, 2025 and sell it today you would earn a total of 226.00 from holding Rocket Companies or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Rocket Companies vs. WisdomTree Physical Bitcoin
Performance |
| Timeline |
| Rocket Companies |
| WisdomTree Physical |
Rocket Companies and WisdomTree Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Companies and WisdomTree Physical
The main advantage of trading using opposite Rocket Companies and WisdomTree Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Companies position performs unexpectedly, WisdomTree Physical 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 Physical will offset losses from the drop in WisdomTree Physical's long position.| Rocket Companies vs. Nasdaq Inc | Rocket Companies vs. MSCI Inc | Rocket Companies vs. MetLife | Rocket Companies vs. The Allstate |
| WisdomTree Physical vs. CoinShares Physical Bitcoin | WisdomTree Physical vs. WisdomTree Ethereum ETC | WisdomTree Physical vs. 21Shares Bitcoin Cash | WisdomTree Physical vs. 21Shares Stellar ETP |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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