Correlation Between EA Series and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both EA Series and WisdomTree Global 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 EA Series and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and WisdomTree Global High, you can compare the effects of market volatilities on EA Series and WisdomTree Global 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 EA Series with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and WisdomTree Global.
Diversification Opportunities for EA Series and WisdomTree Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STXT and WisdomTree is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and WisdomTree Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global High and EA Series 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 EA Series Trust are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global High has no effect on the direction of EA Series i.e., EA Series and WisdomTree Global go up and down completely randomly.
Pair Corralation between EA Series and WisdomTree Global
Given the investment horizon of 90 days EA Series is expected to generate 25.09 times less return on investment than WisdomTree Global. But when comparing it to its historical volatility, EA Series Trust is 3.28 times less risky than WisdomTree Global. It trades about 0.04 of its potential returns per unit of risk. WisdomTree Global High is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 5,889 in WisdomTree Global High on November 6, 2025 and sell it today you would earn a total of 719.00 from holding WisdomTree Global High or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
EA Series Trust vs. WisdomTree Global High
Performance |
| Timeline |
| EA Series Trust |
| WisdomTree Global High |
EA Series and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and WisdomTree Global
The main advantage of trading using opposite EA Series and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, WisdomTree Global 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 Global will offset losses from the drop in WisdomTree Global's long position.| EA Series vs. Invesco BulletShares 2031 | EA Series vs. iShares Interest Rate | EA Series vs. The Advisors Inner | EA Series vs. Invesco BulletShares 2032 |
| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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