Correlation Between WisdomTree Battery and IShares SMIM
Can any of the company-specific risk be diversified away by investing in both WisdomTree Battery and IShares SMIM 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 Battery and IShares SMIM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Battery Solutions and iShares SMIM ETF, you can compare the effects of market volatilities on WisdomTree Battery and IShares SMIM 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 Battery with a short position of IShares SMIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Battery and IShares SMIM.
Diversification Opportunities for WisdomTree Battery and IShares SMIM
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and IShares is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Battery Solutions and iShares SMIM ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SMIM ETF and WisdomTree Battery 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 Battery Solutions are associated (or correlated) with IShares SMIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SMIM ETF has no effect on the direction of WisdomTree Battery i.e., WisdomTree Battery and IShares SMIM go up and down completely randomly.
Pair Corralation between WisdomTree Battery and IShares SMIM
Assuming the 90 days trading horizon WisdomTree Battery Solutions is expected to generate 2.23 times more return on investment than IShares SMIM. However, WisdomTree Battery is 2.23 times more volatile than iShares SMIM ETF. It trades about 0.1 of its potential returns per unit of risk. iShares SMIM ETF is currently generating about 0.15 per unit of risk. If you would invest 4,787 in WisdomTree Battery Solutions on October 26, 2025 and sell it today you would earn a total of 421.00 from holding WisdomTree Battery Solutions or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Battery Solutions vs. iShares SMIM ETF
Performance |