Correlation Between WisdomTree Managed and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and Strategy Shares 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 Managed and Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and Strategy Shares, you can compare the effects of market volatilities on WisdomTree Managed and Strategy Shares 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 Managed with a short position of Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and Strategy Shares.
Diversification Opportunities for WisdomTree Managed and Strategy Shares
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Strategy is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares and WisdomTree Managed 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 Managed Futures are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and Strategy Shares go up and down completely randomly.
Pair Corralation between WisdomTree Managed and Strategy Shares
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 1.44 times less return on investment than Strategy Shares. But when comparing it to its historical volatility, WisdomTree Managed Futures is 1.33 times less risky than Strategy Shares. It trades about 0.1 of its potential returns per unit of risk. Strategy Shares is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,594 in Strategy Shares on November 28, 2025 and sell it today you would earn a total of 166.00 from holding Strategy Shares or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. Strategy Shares
Performance |
| Timeline |
| WisdomTree Managed |
| Strategy Shares |
WisdomTree Managed and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and Strategy Shares
The main advantage of trading using opposite WisdomTree Managed and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
| Strategy Shares vs. iShares ESG Aware | Strategy Shares vs. iShares MSCI Germany | Strategy Shares vs. First Trust LongShort | Strategy Shares vs. Fidelity MSCI Utilities |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |