Correlation Between WisdomTree Battery and HSBC Emerging
Can any of the company-specific risk be diversified away by investing in both WisdomTree Battery and HSBC Emerging 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 HSBC Emerging 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 HSBC Emerging Market, you can compare the effects of market volatilities on WisdomTree Battery and HSBC Emerging 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 HSBC Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Battery and HSBC Emerging.
Diversification Opportunities for WisdomTree Battery and HSBC Emerging
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and HSBC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Battery Solutions and HSBC Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Emerging Market 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 HSBC Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Emerging Market has no effect on the direction of WisdomTree Battery i.e., WisdomTree Battery and HSBC Emerging go up and down completely randomly.
Pair Corralation between WisdomTree Battery and HSBC Emerging
Assuming the 90 days trading horizon WisdomTree Battery Solutions is expected to generate 1.62 times more return on investment than HSBC Emerging. However, WisdomTree Battery is 1.62 times more volatile than HSBC Emerging Market. It trades about 0.11 of its potential returns per unit of risk. HSBC Emerging Market is currently generating about 0.1 per unit of risk. If you would invest 3,004 in WisdomTree Battery Solutions on October 1, 2025 and sell it today you would earn a total of 1,646 from holding WisdomTree Battery Solutions or generate 54.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Battery Solutions vs. HSBC Emerging Market
Performance |
| Timeline |
| WisdomTree Battery |
| HSBC Emerging Market |
WisdomTree Battery and HSBC Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Battery and HSBC Emerging
The main advantage of trading using opposite WisdomTree Battery and HSBC Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Battery position performs unexpectedly, HSBC Emerging 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 HSBC Emerging will offset losses from the drop in HSBC Emerging's long position.| WisdomTree Battery vs. WisdomTree Emerging Markets | WisdomTree Battery vs. WisdomTree Quality Dividend | WisdomTree Battery vs. WisdomTree Cybersecurity UCITS |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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