Correlation Between WisdomTree Wheat and WisdomTree Copper
Can any of the company-specific risk be diversified away by investing in both WisdomTree Wheat and WisdomTree Copper 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 Wheat and WisdomTree Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Wheat EUR and WisdomTree Copper EUR, you can compare the effects of market volatilities on WisdomTree Wheat and WisdomTree Copper 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 Wheat with a short position of WisdomTree Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Wheat and WisdomTree Copper.
Diversification Opportunities for WisdomTree Wheat and WisdomTree Copper
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and WisdomTree is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Wheat EUR and WisdomTree Copper EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Copper EUR and WisdomTree Wheat 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 Wheat EUR are associated (or correlated) with WisdomTree Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Copper EUR has no effect on the direction of WisdomTree Wheat i.e., WisdomTree Wheat and WisdomTree Copper go up and down completely randomly.
Pair Corralation between WisdomTree Wheat and WisdomTree Copper
Assuming the 90 days trading horizon WisdomTree Wheat EUR is expected to under-perform the WisdomTree Copper. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Wheat EUR is 1.14 times less risky than WisdomTree Copper. The etf trades about -0.03 of its potential returns per unit of risk. The WisdomTree Copper EUR is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,889 in WisdomTree Copper EUR on October 30, 2025 and sell it today you would earn a total of 444.00 from holding WisdomTree Copper EUR or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Wheat EUR vs. WisdomTree Copper EUR
Performance |
| Timeline |
| WisdomTree Wheat EUR |
| WisdomTree Copper EUR |
WisdomTree Wheat and WisdomTree Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Wheat and WisdomTree Copper
The main advantage of trading using opposite WisdomTree Wheat and WisdomTree Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Wheat position performs unexpectedly, WisdomTree Copper 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 Copper will offset losses from the drop in WisdomTree Copper's long position.| WisdomTree Wheat vs. WisdomTree Physical Bitcoin | WisdomTree Wheat vs. WisdomTree Gold EUR | WisdomTree Wheat vs. WisdomTree Physical Cardano | WisdomTree Wheat vs. WisdomTree Physical Polkadot |
| WisdomTree Copper vs. WisdomTree Wheat EUR | WisdomTree Copper vs. WisdomTree Physical Bitcoin | WisdomTree Copper vs. WisdomTree Gold EUR | WisdomTree Copper vs. WisdomTree Physical Cardano |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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