Correlation Between WisdomTree and Innventure
Can any of the company-specific risk be diversified away by investing in both WisdomTree and Innventure 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 Innventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and Innventure, you can compare the effects of market volatilities on WisdomTree and Innventure 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 Innventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and Innventure.
Diversification Opportunities for WisdomTree and Innventure
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Innventure is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and Innventure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure 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 Innventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure has no effect on the direction of WisdomTree i.e., WisdomTree and Innventure go up and down completely randomly.
Pair Corralation between WisdomTree and Innventure
Allowing for the 90-day total investment horizon WisdomTree is expected to generate 0.24 times more return on investment than Innventure. However, WisdomTree is 4.09 times less risky than Innventure. It trades about 0.32 of its potential returns per unit of risk. Innventure is currently generating about -0.02 per unit of risk. If you would invest 1,105 in WisdomTree on November 17, 2025 and sell it today you would earn a total of 531.00 from holding WisdomTree or generate 48.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree vs. Innventure
Performance |
| Timeline |
| WisdomTree |
| Innventure |
WisdomTree and Innventure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and Innventure
The main advantage of trading using opposite WisdomTree and Innventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, Innventure 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 Innventure will offset losses from the drop in Innventure's long position.| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
| Innventure vs. Dynamix | Innventure vs. Solarius Capital Acquisition | Innventure vs. McKinley Acquisition | Innventure vs. SWK 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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