Correlation Between SWP Growth and WisdomTree Interest
Can any of the company-specific risk be diversified away by investing in both SWP Growth and WisdomTree Interest 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 SWP Growth and WisdomTree Interest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWP Growth Income and WisdomTree Interest Rate, you can compare the effects of market volatilities on SWP Growth and WisdomTree Interest 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 SWP Growth with a short position of WisdomTree Interest. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWP Growth and WisdomTree Interest.
Diversification Opportunities for SWP Growth and WisdomTree Interest
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SWP and WisdomTree is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SWP Growth Income and WisdomTree Interest Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Interest Rate and SWP Growth 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 SWP Growth Income are associated (or correlated) with WisdomTree Interest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Interest Rate has no effect on the direction of SWP Growth i.e., SWP Growth and WisdomTree Interest go up and down completely randomly.
Pair Corralation between SWP Growth and WisdomTree Interest
Considering the 90-day investment horizon SWP Growth Income is expected to generate 3.85 times more return on investment than WisdomTree Interest. However, SWP Growth is 3.85 times more volatile than WisdomTree Interest Rate. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Interest Rate is currently generating about 0.06 per unit of risk. If you would invest 2,747 in SWP Growth Income on October 29, 2025 and sell it today you would earn a total of 104.00 from holding SWP Growth Income or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWP Growth Income vs. WisdomTree Interest Rate
Performance |
| Timeline |
| SWP Growth Income |
| WisdomTree Interest Rate |
SWP Growth and WisdomTree Interest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWP Growth and WisdomTree Interest
The main advantage of trading using opposite SWP Growth and WisdomTree Interest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWP Growth position performs unexpectedly, WisdomTree Interest 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 Interest will offset losses from the drop in WisdomTree Interest's long position.| SWP Growth vs. FT Vest Equity | SWP Growth vs. Northern Lights | SWP Growth vs. Diamond Hill Funds | SWP Growth vs. Dimensional International High |
| WisdomTree Interest vs. WisdomTree Yield Enhanced | WisdomTree Interest vs. Nuveen ESG High | WisdomTree Interest vs. Columbia Short Duration | WisdomTree Interest vs. iShares Inflation Hedged |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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