Correlation Between WisdomTree Asia and Bitwise Funds
Can any of the company-specific risk be diversified away by investing in both WisdomTree Asia and Bitwise Funds 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 Asia and Bitwise Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Asia Defense and Bitwise Funds Trust, you can compare the effects of market volatilities on WisdomTree Asia and Bitwise Funds 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 Asia with a short position of Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Asia and Bitwise Funds.
Diversification Opportunities for WisdomTree Asia and Bitwise Funds
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Bitwise is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Asia Defense and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust and WisdomTree Asia 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 Asia Defense are associated (or correlated) with Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of WisdomTree Asia i.e., WisdomTree Asia and Bitwise Funds go up and down completely randomly.
Pair Corralation between WisdomTree Asia and Bitwise Funds
Given the investment horizon of 90 days WisdomTree Asia Defense is expected to generate 0.73 times more return on investment than Bitwise Funds. However, WisdomTree Asia Defense is 1.37 times less risky than Bitwise Funds. It trades about 0.14 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about -0.21 per unit of risk. If you would invest 2,742 in WisdomTree Asia Defense on October 3, 2025 and sell it today you would earn a total of 109.00 from holding WisdomTree Asia Defense or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Asia Defense vs. Bitwise Funds Trust
Performance |
| Timeline |
| WisdomTree Asia Defense |
| Bitwise Funds Trust |
WisdomTree Asia and Bitwise Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Asia and Bitwise Funds
The main advantage of trading using opposite WisdomTree Asia and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Asia position performs unexpectedly, Bitwise Funds 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 Bitwise Funds will offset losses from the drop in Bitwise Funds' long position.| WisdomTree Asia vs. Global X Uranium | WisdomTree Asia vs. iShares MSCI KLD | WisdomTree Asia vs. Schwab International Small Cap | WisdomTree Asia vs. ProShares UltraPro SP500 |
| Bitwise Funds vs. Allspring Exchange Traded Funds | Bitwise Funds vs. iShares Trust | Bitwise Funds vs. Cullen Small Cap | Bitwise Funds vs. Banking Fund Investor |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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