Correlation Between WisdomTree Inflation and RBB Fund
Can any of the company-specific risk be diversified away by investing in both WisdomTree Inflation and RBB Fund 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 Inflation and RBB Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Inflation Plus and The RBB Fund, you can compare the effects of market volatilities on WisdomTree Inflation and RBB Fund 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 Inflation with a short position of RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Inflation and RBB Fund.
Diversification Opportunities for WisdomTree Inflation and RBB Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and RBB is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Inflation Plus and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund and WisdomTree Inflation 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 Inflation Plus are associated (or correlated) with RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of WisdomTree Inflation i.e., WisdomTree Inflation and RBB Fund go up and down completely randomly.
Pair Corralation between WisdomTree Inflation and RBB Fund
Given the investment horizon of 90 days WisdomTree Inflation is expected to generate 3.17 times less return on investment than RBB Fund. In addition to that, WisdomTree Inflation is 1.4 times more volatile than The RBB Fund. It trades about 0.06 of its total potential returns per unit of risk. The RBB Fund is currently generating about 0.29 per unit of volatility. If you would invest 1,017 in The RBB Fund on November 8, 2025 and sell it today you would earn a total of 153.00 from holding The RBB Fund or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Inflation Plus vs. The RBB Fund
Performance |
| Timeline |
| WisdomTree Inflation Plus |
| RBB Fund |
WisdomTree Inflation and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Inflation and RBB Fund
The main advantage of trading using opposite WisdomTree Inflation and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Inflation position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.| WisdomTree Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation vs. Tidal Trust II |
| RBB Fund vs. Hotchkis Wiley SMID | RBB Fund vs. Consumer Goods Ultrasector | RBB Fund vs. YieldMax Target 12 | RBB Fund vs. Innovator ETFs Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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