Correlation Between WisdomTree Managed and Defiance Daily
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and Defiance Daily 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 Defiance Daily 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 Defiance Daily Target, you can compare the effects of market volatilities on WisdomTree Managed and Defiance Daily 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 Defiance Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and Defiance Daily.
Diversification Opportunities for WisdomTree Managed and Defiance Daily
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Defiance is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and Defiance Daily Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defiance Daily Target 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 Defiance Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defiance Daily Target has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and Defiance Daily go up and down completely randomly.
Pair Corralation between WisdomTree Managed and Defiance Daily
Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 0.19 times more return on investment than Defiance Daily. However, WisdomTree Managed Futures is 5.25 times less risky than Defiance Daily. It trades about 0.06 of its potential returns per unit of risk. Defiance Daily Target is currently generating about -0.15 per unit of risk. If you would invest 3,732 in WisdomTree Managed Futures on November 7, 2025 and sell it today you would earn a total of 96.00 from holding WisdomTree Managed Futures or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.16% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. Defiance Daily Target
Performance |
| Timeline |
| WisdomTree Managed |
| Defiance Daily Target |
Risk-Adjusted Performance
Weakest
Weak | Strong |
WisdomTree Managed and Defiance Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and Defiance Daily
The main advantage of trading using opposite WisdomTree Managed and Defiance Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, Defiance Daily 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 Defiance Daily will offset losses from the drop in Defiance Daily's 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 |
| Defiance Daily vs. Unlimited HFEQ Equity | Defiance Daily vs. ProShares UltraShort Health | Defiance Daily vs. The 2023 ETF | Defiance Daily vs. Themes Infrastructure 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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