Correlation Between WisdomTree Enhanced and WisdomTree Coffee
Can any of the company-specific risk be diversified away by investing in both WisdomTree Enhanced and WisdomTree Coffee 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 Coffee 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 Coffee 2x, you can compare the effects of market volatilities on WisdomTree Enhanced and WisdomTree Coffee 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 Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Enhanced and WisdomTree Coffee.
Diversification Opportunities for WisdomTree Enhanced and WisdomTree Coffee
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and WisdomTree is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Enhanced Commodity and WisdomTree Coffee 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Coffee 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 Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Coffee has no effect on the direction of WisdomTree Enhanced i.e., WisdomTree Enhanced and WisdomTree Coffee go up and down completely randomly.
Pair Corralation between WisdomTree Enhanced and WisdomTree Coffee
Assuming the 90 days trading horizon WisdomTree Enhanced Commodity is expected to generate 0.27 times more return on investment than WisdomTree Coffee. However, WisdomTree Enhanced Commodity is 3.74 times less risky than WisdomTree Coffee. It trades about 0.18 of its potential returns per unit of risk. WisdomTree Coffee 2x is currently generating about -0.23 per unit of risk. If you would invest 105,884 in WisdomTree Enhanced Commodity on November 28, 2025 and sell it today you would earn a total of 11,816 from holding WisdomTree Enhanced Commodity or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Enhanced Commodity vs. WisdomTree Coffee 2x
Performance |
| Timeline |
| WisdomTree Enhanced |
| WisdomTree Coffee |
WisdomTree Enhanced and WisdomTree Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Enhanced and WisdomTree Coffee
The main advantage of trading using opposite WisdomTree Enhanced and WisdomTree Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Enhanced position performs unexpectedly, WisdomTree Coffee 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 Coffee will offset losses from the drop in WisdomTree Coffee's long position.| WisdomTree Enhanced vs. GraniteShares 3x Long | WisdomTree Enhanced vs. GraniteShares 3x Long | WisdomTree Enhanced vs. Leverage Shares 2x | WisdomTree Enhanced vs. Leverage Shares 3x |
| WisdomTree Coffee vs. WisdomTree Zinc | WisdomTree Coffee vs. WisdomTree Brent Crude | WisdomTree Coffee vs. WisdomTree Aluminium 2x | WisdomTree Coffee 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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