Correlation Between WisdomTree Battery and WisdomTree Global
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Can any of the company-specific risk be diversified away by investing in both WisdomTree Battery and WisdomTree Global 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 WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Battery Metals and WisdomTree Global Quality, you can compare the effects of market volatilities on WisdomTree Battery and WisdomTree Global 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 WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Battery and WisdomTree Global.
Diversification Opportunities for WisdomTree Battery and WisdomTree Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Battery Metals and WisdomTree Global Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global Quality 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 Metals are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global Quality has no effect on the direction of WisdomTree Battery i.e., WisdomTree Battery and WisdomTree Global go up and down completely randomly.
Pair Corralation between WisdomTree Battery and WisdomTree Global
Assuming the 90 days trading horizon WisdomTree Battery Metals is expected to generate 2.11 times more return on investment than WisdomTree Global. However, WisdomTree Battery is 2.11 times more volatile than WisdomTree Global Quality. It trades about 0.1 of its potential returns per unit of risk. WisdomTree Global Quality is currently generating about 0.15 per unit of risk. If you would invest 1,563 in WisdomTree Battery Metals on November 19, 2025 and sell it today you would earn a total of 121.00 from holding WisdomTree Battery Metals or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
WisdomTree Battery Metals vs. WisdomTree Global Quality
Performance |
| Timeline |
| WisdomTree Battery Metals |
| WisdomTree Global Quality |
WisdomTree Battery and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Battery and WisdomTree Global
The main advantage of trading using opposite WisdomTree Battery and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Battery position performs unexpectedly, WisdomTree Global 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 Global will offset losses from the drop in WisdomTree Global's long position.| WisdomTree Battery vs. UBS Fund Solutions | WisdomTree Battery vs. Xtrackers II | WisdomTree Battery vs. Xtrackers Nikkei 225 | WisdomTree Battery vs. iShares VII PLC |
| WisdomTree Global vs. WisdomTree WTI Crude | WisdomTree Global vs. WisdomTree Battery Metals | WisdomTree Global vs. WisdomTree STOXX Europe | WisdomTree Global vs. WisdomTree Physical Silver |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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