Correlation Between WisdomTree and ASA Gold
Can any of the company-specific risk be diversified away by investing in both WisdomTree and ASA Gold 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 and ASA Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and ASA Gold and, you can compare the effects of market volatilities on WisdomTree and ASA Gold 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 with a short position of ASA Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and ASA Gold.
Diversification Opportunities for WisdomTree and ASA Gold
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and ASA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and ASA Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA Gold and WisdomTree 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 are associated (or correlated) with ASA Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA Gold has no effect on the direction of WisdomTree i.e., WisdomTree and ASA Gold go up and down completely randomly.
Pair Corralation between WisdomTree and ASA Gold
Allowing for the 90-day total investment horizon WisdomTree is expected to generate 0.63 times more return on investment than ASA Gold. However, WisdomTree is 1.58 times less risky than ASA Gold. It trades about 0.37 of its potential returns per unit of risk. ASA Gold and is currently generating about 0.22 per unit of risk. If you would invest 1,099 in WisdomTree on November 29, 2025 and sell it today you would earn a total of 632.00 from holding WisdomTree or generate 57.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree vs. ASA Gold and
Performance |
| Timeline |
| WisdomTree |
| ASA Gold |
WisdomTree and ASA Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and ASA Gold
The main advantage of trading using opposite WisdomTree and ASA Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, ASA Gold 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 ASA Gold will offset losses from the drop in ASA Gold's long position.| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
| ASA Gold vs. Oxford Lane Capital | ASA Gold vs. XAI Octagon Floating | ASA Gold vs. Cornerstone Total Return | ASA Gold vs. Cornerstone Strategic Value |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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