Correlation Between SPDR Bloomberg and WisdomTree Physical
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and WisdomTree Physical 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 Bloomberg and WisdomTree Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg 1 3 and WisdomTree Physical Bitcoin, you can compare the effects of market volatilities on SPDR Bloomberg and WisdomTree Physical 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 Bloomberg with a short position of WisdomTree Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and WisdomTree Physical.
Diversification Opportunities for SPDR Bloomberg and WisdomTree Physical
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and WisdomTree is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg 1 3 and WisdomTree Physical Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Physical and SPDR Bloomberg 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 Bloomberg 1 3 are associated (or correlated) with WisdomTree Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Physical has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and WisdomTree Physical go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and WisdomTree Physical
Assuming the 90 days trading horizon SPDR Bloomberg is expected to generate 16.51 times less return on investment than WisdomTree Physical. But when comparing it to its historical volatility, SPDR Bloomberg 1 3 is 108.09 times less risky than WisdomTree Physical. It trades about 0.67 of its potential returns per unit of risk. WisdomTree Physical Bitcoin is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,701 in WisdomTree Physical Bitcoin on October 23, 2025 and sell it today you would earn a total of 64.00 from holding WisdomTree Physical Bitcoin or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
SPDR Bloomberg 1 3 vs. WisdomTree Physical Bitcoin
Performance |
| Timeline |
| SPDR Bloomberg 1 |
| WisdomTree Physical |
SPDR Bloomberg and WisdomTree Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and WisdomTree Physical
The main advantage of trading using opposite SPDR Bloomberg and WisdomTree Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, WisdomTree Physical 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 Physical will offset losses from the drop in WisdomTree Physical's long position.| SPDR Bloomberg vs. SPDR MSCI Europe | SPDR Bloomberg vs. SPDR SP Utilities | SPDR Bloomberg vs. SPDR MSCI Europe | SPDR Bloomberg vs. SPDR MSCI EM |
| WisdomTree Physical vs. iShares UK Dividend | WisdomTree Physical vs. iShares SMIM ETF | WisdomTree Physical vs. iShares Euro Dividend | WisdomTree Physical vs. Lyxor DAX 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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