Correlation Between WisdomTree and Source Capital
Can any of the company-specific risk be diversified away by investing in both WisdomTree and Source Capital 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 Source Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and Source Capital Closed, you can compare the effects of market volatilities on WisdomTree and Source Capital 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 Source Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and Source Capital.
Diversification Opportunities for WisdomTree and Source Capital
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Source is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and Source Capital Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source Capital Closed 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 Source Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source Capital Closed has no effect on the direction of WisdomTree i.e., WisdomTree and Source Capital go up and down completely randomly.
Pair Corralation between WisdomTree and Source Capital
Allowing for the 90-day total investment horizon WisdomTree is expected to generate 2.12 times more return on investment than Source Capital. However, WisdomTree is 2.12 times more volatile than Source Capital Closed. It trades about 0.05 of its potential returns per unit of risk. Source Capital Closed is currently generating about 0.07 per unit of risk. If you would invest 1,015 in WisdomTree on September 30, 2025 and sell it today you would earn a total of 221.00 from holding WisdomTree or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree vs. Source Capital Closed
Performance |
| Timeline |
| WisdomTree |
| Source Capital Closed |
WisdomTree and Source Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and Source Capital
The main advantage of trading using opposite WisdomTree and Source Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, Source Capital 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 Source Capital will offset losses from the drop in Source Capital's long position.| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
| Source Capital vs. Saratoga Investment Corp | Source Capital vs. Diamond Hill Investment | Source Capital vs. Stellus Capital Investment | Source Capital vs. PennantPark Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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