Correlation Between WisdomTree Managed and SWP Growth
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and SWP Growth 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 SWP Growth 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 SWP Growth Income, you can compare the effects of market volatilities on WisdomTree Managed and SWP Growth 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 SWP Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and SWP Growth.
Diversification Opportunities for WisdomTree Managed and SWP Growth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and SWP is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and SWP Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWP Growth Income 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 SWP Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWP Growth Income has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and SWP Growth go up and down completely randomly.
Pair Corralation between WisdomTree Managed and SWP Growth
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 1.33 times less return on investment than SWP Growth. But when comparing it to its historical volatility, WisdomTree Managed Futures is 1.09 times less risky than SWP Growth. It trades about 0.09 of its potential returns per unit of risk. SWP Growth Income is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,726 in SWP Growth Income on November 6, 2025 and sell it today you would earn a total of 136.30 from holding SWP Growth Income or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. SWP Growth Income
Performance |
| Timeline |
| WisdomTree Managed |
| SWP Growth Income |
WisdomTree Managed and SWP Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and SWP Growth
The main advantage of trading using opposite WisdomTree Managed and SWP Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, SWP Growth 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 SWP Growth will offset losses from the drop in SWP Growth'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 |
| SWP Growth vs. FT Vest Equity | SWP Growth vs. Northern Lights | SWP Growth vs. Diamond Hill Funds | SWP Growth vs. Dimensional International High |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |