Correlation Between WisdomTree Managed and WisdomTree Continuous
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and WisdomTree Continuous 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 WisdomTree Continuous 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 WisdomTree Continuous Commodity, you can compare the effects of market volatilities on WisdomTree Managed and WisdomTree Continuous 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 WisdomTree Continuous. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and WisdomTree Continuous.
Diversification Opportunities for WisdomTree Managed and WisdomTree Continuous
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous 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 WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and WisdomTree Continuous go up and down completely randomly.
Pair Corralation between WisdomTree Managed and WisdomTree Continuous
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 3.65 times less return on investment than WisdomTree Continuous. But when comparing it to its historical volatility, WisdomTree Managed Futures is 2.24 times less risky than WisdomTree Continuous. It trades about 0.08 of its potential returns per unit of risk. WisdomTree Continuous Commodity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,005 in WisdomTree Continuous Commodity on November 23, 2025 and sell it today you would earn a total of 258.00 from holding WisdomTree Continuous Commodity or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. WisdomTree Continuous Commodit
Performance |
| Timeline |
| WisdomTree Managed |
| WisdomTree Continuous |
WisdomTree Managed and WisdomTree Continuous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and WisdomTree Continuous
The main advantage of trading using opposite WisdomTree Managed and WisdomTree Continuous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, WisdomTree Continuous 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 WisdomTree Continuous will offset losses from the drop in WisdomTree Continuous' 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 |
| WisdomTree Continuous vs. 3EDGE Dynamic Fixed | WisdomTree Continuous vs. KraneShares Trust | WisdomTree Continuous vs. Iq Candriam ESG | WisdomTree Continuous vs. BNY Mellon ETF |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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