Correlation Between SPDR MSCI and WisdomTree Battery
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI 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 SPDR MSCI and WisdomTree Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR MSCI Europe and WisdomTree Battery Solutions, you can compare the effects of market volatilities on SPDR MSCI 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 SPDR MSCI with a short position of WisdomTree Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and WisdomTree Battery.
Diversification Opportunities for SPDR MSCI and WisdomTree Battery
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and WisdomTree is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI Europe and WisdomTree Battery Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery and SPDR MSCI 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 SPDR MSCI Europe 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 SPDR MSCI i.e., SPDR MSCI and WisdomTree Battery go up and down completely randomly.
Pair Corralation between SPDR MSCI and WisdomTree Battery
Assuming the 90 days trading horizon SPDR MSCI Europe is expected to generate 0.5 times more return on investment than WisdomTree Battery. However, SPDR MSCI Europe is 2.01 times less risky than WisdomTree Battery. It trades about 0.19 of its potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.02 per unit of risk. If you would invest 20,650 in SPDR MSCI Europe on November 12, 2025 and sell it today you would earn a total of 1,985 from holding SPDR MSCI Europe or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR MSCI Europe vs. WisdomTree Battery Solutions
Performance |
| Timeline |
| SPDR MSCI Europe |
| WisdomTree Battery |
SPDR MSCI and WisdomTree Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR MSCI and WisdomTree Battery
The main advantage of trading using opposite SPDR MSCI and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI 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.| SPDR MSCI vs. 21Shares Crypto Basket | SPDR MSCI vs. WisdomTree Ethereum ETC | SPDR MSCI vs. iShares MSCI Japan | SPDR MSCI vs. iShares Swiss Domestic |
| WisdomTree Battery vs. iShares MSCI Japan | WisdomTree Battery vs. iShares Global High | WisdomTree Battery vs. ZKB Palladium ETF | WisdomTree Battery vs. SPDR MSCI Europe |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |