Correlation Between SPDR SP and WisdomTree Battery
Can any of the company-specific risk be diversified away by investing in both SPDR SP 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 SP 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 SP Industrials and WisdomTree Battery Solutions, you can compare the effects of market volatilities on SPDR SP 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 SP with a short position of WisdomTree Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and WisdomTree Battery.
Diversification Opportunities for SPDR SP and WisdomTree Battery
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and WisdomTree is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Industrials 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 SP 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 SP Industrials 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 SP i.e., SPDR SP and WisdomTree Battery go up and down completely randomly.
Pair Corralation between SPDR SP and WisdomTree Battery
Assuming the 90 days trading horizon SPDR SP Industrials is expected to generate 0.53 times more return on investment than WisdomTree Battery. However, SPDR SP Industrials is 1.88 times less risky than WisdomTree Battery. It trades about 0.38 of its potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.18 per unit of risk. If you would invest 6,485 in SPDR SP Industrials on November 22, 2025 and sell it today you would earn a total of 1,161 from holding SPDR SP Industrials or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Industrials vs. WisdomTree Battery Solutions
Performance |
| Timeline |
| SPDR SP Industrials |
| WisdomTree Battery |
SPDR SP and WisdomTree Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and WisdomTree Battery
The main advantage of trading using opposite SPDR SP and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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 SP vs. iShares MSCI USA | SPDR SP vs. Invesco EQQQ NASDAQ 100 | SPDR SP vs. iShares VII PLC | SPDR SP vs. iShares MSCI North |
| WisdomTree Battery vs. WisdomTree Emerging Markets | WisdomTree Battery vs. WisdomTree Quality Dividend | WisdomTree Battery vs. WisdomTree Cybersecurity UCITS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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