Correlation Between UBS ETF and WisdomTree Battery
Can any of the company-specific risk be diversified away by investing in both UBS ETF and WisdomTree Battery 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 UBS ETF and WisdomTree Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETF SMIM and WisdomTree Battery Solutions, you can compare the effects of market volatilities on UBS ETF and WisdomTree Battery 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 UBS ETF with a short position of WisdomTree Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and WisdomTree Battery.
Diversification Opportunities for UBS ETF and WisdomTree Battery
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UBS and WisdomTree is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF SMIM and WisdomTree Battery Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery and UBS ETF 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 UBS ETF SMIM are associated (or correlated) with WisdomTree Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Battery has no effect on the direction of UBS ETF i.e., UBS ETF and WisdomTree Battery go up and down completely randomly.
Pair Corralation between UBS ETF and WisdomTree Battery
Assuming the 90 days trading horizon UBS ETF is expected to generate 1.37 times less return on investment than WisdomTree Battery. But when comparing it to its historical volatility, UBS ETF SMIM is 2.43 times less risky than WisdomTree Battery. It trades about 0.2 of its potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,579 in WisdomTree Battery Solutions on December 3, 2025 and sell it today you would earn a total of 468.00 from holding WisdomTree Battery Solutions or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.31% |
| Values | Daily Returns |
UBS ETF SMIM vs. WisdomTree Battery Solutions
Performance |
| Timeline |
| UBS ETF SMIM |
| WisdomTree Battery |
UBS ETF and WisdomTree Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and WisdomTree Battery
The main advantage of trading using opposite UBS ETF and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, WisdomTree Battery 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 Battery will offset losses from the drop in WisdomTree Battery's long position.The idea behind UBS ETF SMIM and WisdomTree Battery Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WisdomTree Battery vs. WisdomTree Emerging Markets | WisdomTree Battery vs. WisdomTree Quality Dividend | WisdomTree Battery vs. WisdomTree Cybersecurity UCITS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |