Correlation Between WisdomTree and Cipher Mining

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

Diversification Opportunities for WisdomTree and Cipher Mining

-0.47
  Correlation Coefficient

Very good diversification

The 3 months correlation between WisdomTree and Cipher is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining 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 Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of WisdomTree i.e., WisdomTree and Cipher Mining go up and down completely randomly.

Pair Corralation between WisdomTree and Cipher Mining

Allowing for the 90-day total investment horizon WisdomTree is expected to generate 0.17 times more return on investment than Cipher Mining. However, WisdomTree is 6.0 times less risky than Cipher Mining. It trades about 0.24 of its potential returns per unit of risk. Cipher Mining is currently generating about -0.12 per unit of risk. If you would invest  1,223  in WisdomTree on October 26, 2025 and sell it today you would earn a total of  405.00  from holding WisdomTree or generate 33.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy72.13%
ValuesDaily Returns

WisdomTree  vs.  Cipher Mining

 Performance 
       Timeline  
WisdomTree 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree are ranked lower than 19 (%) 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.
Cipher Mining 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cipher Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

WisdomTree and Cipher Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree and Cipher Mining

The main advantage of trading using opposite WisdomTree and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.
The idea behind WisdomTree and Cipher Mining 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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