Correlation Between WisdomTree Enhanced and WisdomTree Aluminium
Can any of the company-specific risk be diversified away by investing in both WisdomTree Enhanced and WisdomTree Aluminium 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 Enhanced and WisdomTree Aluminium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Enhanced Commodity and WisdomTree Aluminium, you can compare the effects of market volatilities on WisdomTree Enhanced and WisdomTree Aluminium 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 Enhanced with a short position of WisdomTree Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Enhanced and WisdomTree Aluminium.
Diversification Opportunities for WisdomTree Enhanced and WisdomTree Aluminium
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Enhanced Commodity and WisdomTree Aluminium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Aluminium and WisdomTree Enhanced 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 Enhanced Commodity are associated (or correlated) with WisdomTree Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Aluminium has no effect on the direction of WisdomTree Enhanced i.e., WisdomTree Enhanced and WisdomTree Aluminium go up and down completely randomly.
Pair Corralation between WisdomTree Enhanced and WisdomTree Aluminium
Assuming the 90 days trading horizon WisdomTree Enhanced Commodity is expected to generate 0.78 times more return on investment than WisdomTree Aluminium. However, WisdomTree Enhanced Commodity is 1.28 times less risky than WisdomTree Aluminium. It trades about 0.18 of its potential returns per unit of risk. WisdomTree Aluminium is currently generating about 0.12 per unit of risk. If you would invest 105,401 in WisdomTree Enhanced Commodity on November 3, 2025 and sell it today you would earn a total of 9,749 from holding WisdomTree Enhanced Commodity or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Enhanced Commodity vs. WisdomTree Aluminium
Performance |
| Timeline |
| WisdomTree Enhanced |
| WisdomTree Aluminium |
WisdomTree Enhanced and WisdomTree Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Enhanced and WisdomTree Aluminium
The main advantage of trading using opposite WisdomTree Enhanced and WisdomTree Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Enhanced position performs unexpectedly, WisdomTree Aluminium 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 Aluminium will offset losses from the drop in WisdomTree Aluminium's long position.| WisdomTree Enhanced vs. WisdomTree Zinc | WisdomTree Enhanced vs. WisdomTree Brent Crude | WisdomTree Enhanced vs. WisdomTree Aluminium 2x | WisdomTree Enhanced vs. WisdomTree Gold 3x |
| WisdomTree Aluminium vs. WisdomTree Zinc | WisdomTree Aluminium vs. WisdomTree Brent Crude | WisdomTree Aluminium vs. WisdomTree Aluminium 2x | WisdomTree Aluminium vs. WisdomTree Enhanced Commodity |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |