Correlation Between SWP Growth and WisdomTree High
Can any of the company-specific risk be diversified away by investing in both SWP Growth and WisdomTree High 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 High 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 High Dividend, you can compare the effects of market volatilities on SWP Growth and WisdomTree High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWP Growth and WisdomTree High.
Diversification Opportunities for SWP Growth and WisdomTree High
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SWP and WisdomTree is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SWP Growth Income and WisdomTree High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High Dividend 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree High Dividend has no effect on the direction of SWP Growth i.e., SWP Growth and WisdomTree High go up and down completely randomly.
Pair Corralation between SWP Growth and WisdomTree High
Considering the 90-day investment horizon SWP Growth is expected to generate 3.78 times less return on investment than WisdomTree High. In addition to that, SWP Growth is 1.15 times more volatile than WisdomTree High Dividend. It trades about 0.07 of its total potential returns per unit of risk. WisdomTree High Dividend is currently generating about 0.31 per unit of volatility. If you would invest 9,838 in WisdomTree High Dividend on November 8, 2025 and sell it today you would earn a total of 1,264 from holding WisdomTree High Dividend or generate 12.85% 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 High Dividend
Performance |
| Timeline |
| SWP Growth Income |
| WisdomTree High Dividend |
SWP Growth and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWP Growth and WisdomTree High
The main advantage of trading using opposite SWP Growth and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWP Growth position performs unexpectedly, WisdomTree High 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 High will offset losses from the drop in WisdomTree High'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 High vs. WisdomTree Earnings 500 | WisdomTree High vs. Pacer Developed Markets | WisdomTree High vs. iShares Consumer Staples | WisdomTree High vs. iShares MSCI Switzerland |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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