Correlation Between WisdomTree Managed and AB Active
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and AB Active 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 AB Active 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 AB Active ETFs, you can compare the effects of market volatilities on WisdomTree Managed and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and AB Active.
Diversification Opportunities for WisdomTree Managed and AB Active
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and LRGC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and AB Active ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and AB Active go up and down completely randomly.
Pair Corralation between WisdomTree Managed and AB Active
Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 1.01 times more return on investment than AB Active. However, WisdomTree Managed is 1.01 times more volatile than AB Active ETFs. It trades about 0.05 of its potential returns per unit of risk. AB Active ETFs is currently generating about 0.01 per unit of risk. If you would invest 3,754 in WisdomTree Managed Futures on November 8, 2025 and sell it today you would earn a total of 74.00 from holding WisdomTree Managed Futures or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. AB Active ETFs
Performance |
| Timeline |
| WisdomTree Managed |
| AB Active ETFs |
WisdomTree Managed and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and AB Active
The main advantage of trading using opposite WisdomTree Managed and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active'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 |
| AB Active vs. Harbor ETF Trust | AB Active vs. Innovator SP 500 | AB Active vs. Morgan Stanley ETF | AB Active vs. First Trust Nasdaq |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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