Correlation Between WisdomTree and BitVentures

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Can any of the company-specific risk be diversified away by investing in both WisdomTree and BitVentures 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 BitVentures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and BitVentures Limited, you can compare the effects of market volatilities on WisdomTree and BitVentures 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 BitVentures. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and BitVentures.

Diversification Opportunities for WisdomTree and BitVentures

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between WisdomTree and BitVentures is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and BitVentures Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitVentures Limited 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 BitVentures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitVentures Limited has no effect on the direction of WisdomTree i.e., WisdomTree and BitVentures go up and down completely randomly.

Pair Corralation between WisdomTree and BitVentures

Allowing for the 90-day total investment horizon WisdomTree is expected to generate 0.2 times more return on investment than BitVentures. However, WisdomTree is 5.01 times less risky than BitVentures. It trades about 0.35 of its potential returns per unit of risk. BitVentures Limited is currently generating about -0.04 per unit of risk. If you would invest  1,099  in WisdomTree on December 1, 2025 and sell it today you would earn a total of  612.00  from holding WisdomTree or generate 55.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.77%
ValuesDaily Returns

WisdomTree  vs.  BitVentures Limited

 Performance 
       Timeline  
WisdomTree 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, WisdomTree unveiled solid returns over the last few months and may actually be approaching a breakup point.
BitVentures Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days BitVentures Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

WisdomTree and BitVentures Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree and BitVentures

The main advantage of trading using opposite WisdomTree and BitVentures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, BitVentures 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 BitVentures will offset losses from the drop in BitVentures' long position.
The idea behind WisdomTree and BitVentures Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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