Correlation Between WisdomTree and FinVolution
Can any of the company-specific risk be diversified away by investing in both WisdomTree and FinVolution 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 FinVolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and FinVolution Group, you can compare the effects of market volatilities on WisdomTree and FinVolution 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 FinVolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and FinVolution.
Diversification Opportunities for WisdomTree and FinVolution
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WisdomTree and FinVolution is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and FinVolution Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinVolution Group 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 FinVolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinVolution Group has no effect on the direction of WisdomTree i.e., WisdomTree and FinVolution go up and down completely randomly.
Pair Corralation between WisdomTree and FinVolution
Allowing for the 90-day total investment horizon WisdomTree is expected to generate 1.08 times more return on investment than FinVolution. However, WisdomTree is 1.08 times more volatile than FinVolution Group. It trades about 0.4 of its potential returns per unit of risk. FinVolution Group is currently generating about -0.01 per unit of risk. If you would invest 1,167 in WisdomTree on October 15, 2025 and sell it today you would earn a total of 193.00 from holding WisdomTree or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree vs. FinVolution Group
Performance |
| Timeline |
| WisdomTree |
| FinVolution Group |
WisdomTree and FinVolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and FinVolution
The main advantage of trading using opposite WisdomTree and FinVolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, FinVolution 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 FinVolution will offset losses from the drop in FinVolution's long position.| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
| FinVolution vs. 360 Finance | FinVolution vs. Lufax Holding | FinVolution vs. X Financial Class | FinVolution vs. Atlanticus Holdings Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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