Correlation Between EA Series and WisdomTree Managed
Can any of the company-specific risk be diversified away by investing in both EA Series and WisdomTree Managed 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 Managed 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 Managed Futures, you can compare the effects of market volatilities on EA Series and WisdomTree Managed 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 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and WisdomTree Managed.
Diversification Opportunities for EA Series and WisdomTree Managed
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STXT and WisdomTree is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed 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 Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of EA Series i.e., EA Series and WisdomTree Managed go up and down completely randomly.
Pair Corralation between EA Series and WisdomTree Managed
Given the investment horizon of 90 days EA Series is expected to generate 4.63 times less return on investment than WisdomTree Managed. But when comparing it to its historical volatility, EA Series Trust is 3.86 times less risky than WisdomTree Managed. It trades about 0.05 of its potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,732 in WisdomTree Managed Futures on November 7, 2025 and sell it today you would earn a total of 96.00 from holding WisdomTree Managed Futures or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. WisdomTree Managed Futures
Performance |
| Timeline |
| EA Series Trust |
| WisdomTree Managed |
EA Series and WisdomTree Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and WisdomTree Managed
The main advantage of trading using opposite EA Series and WisdomTree Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, WisdomTree Managed 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 Managed will offset losses from the drop in WisdomTree Managed'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 Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |