Correlation Between WisdomTree Bloomberg and WisdomTree Continuous
Can any of the company-specific risk be diversified away by investing in both WisdomTree Bloomberg and WisdomTree Continuous 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 WisdomTree Bloomberg and WisdomTree Continuous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Bloomberg Dollar and WisdomTree Continuous Commodity, you can compare the effects of market volatilities on WisdomTree Bloomberg and WisdomTree Continuous 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 WisdomTree Bloomberg with a short position of WisdomTree Continuous. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Bloomberg and WisdomTree Continuous.
Diversification Opportunities for WisdomTree Bloomberg and WisdomTree Continuous
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and WisdomTree is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Bloomberg Dollar and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous and WisdomTree 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 WisdomTree Bloomberg Dollar are associated (or correlated) with WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of WisdomTree Bloomberg i.e., WisdomTree Bloomberg and WisdomTree Continuous go up and down completely randomly.
Pair Corralation between WisdomTree Bloomberg and WisdomTree Continuous
Given the investment horizon of 90 days WisdomTree Bloomberg Dollar is expected to under-perform the WisdomTree Continuous. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Bloomberg Dollar is 4.4 times less risky than WisdomTree Continuous. The etf trades about -0.04 of its potential returns per unit of risk. The WisdomTree Continuous Commodity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,064 in WisdomTree Continuous Commodity on November 8, 2025 and sell it today you would earn a total of 110.00 from holding WisdomTree Continuous Commodity or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Bloomberg Dollar vs. WisdomTree Continuous Commodit
Performance |
| Timeline |
| WisdomTree Bloomberg |
| WisdomTree Continuous |
WisdomTree Bloomberg and WisdomTree Continuous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Bloomberg and WisdomTree Continuous
The main advantage of trading using opposite WisdomTree Bloomberg and WisdomTree Continuous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Bloomberg position performs unexpectedly, WisdomTree Continuous 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 Continuous will offset losses from the drop in WisdomTree Continuous' long position.| WisdomTree Bloomberg vs. Invesco DB Dollar | WisdomTree Bloomberg vs. Franklin Liberty Ultra | WisdomTree Bloomberg vs. Direxion Daily CSI | WisdomTree Bloomberg vs. WisdomTree Efficient Gold |
| WisdomTree Continuous vs. VanEck Natural Resources | WisdomTree Continuous vs. Direxion Auspice Broad | WisdomTree Continuous vs. Ballast SmallMid Cap | WisdomTree Continuous vs. AIM ETF Products |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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