Correlation Between WisdomTree Trust and EXT
Can any of the company-specific risk be diversified away by investing in both WisdomTree Trust and EXT 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 Trust and EXT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Trust and EXT, you can compare the effects of market volatilities on WisdomTree Trust and EXT 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 Trust with a short position of EXT. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Trust and EXT.
Diversification Opportunities for WisdomTree Trust and EXT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and EXT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Trust and EXT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXT and WisdomTree Trust 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 Trust are associated (or correlated) with EXT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXT has no effect on the direction of WisdomTree Trust i.e., WisdomTree Trust and EXT go up and down completely randomly.
Pair Corralation between WisdomTree Trust and EXT
If you would invest 8,619 in WisdomTree Trust on October 18, 2025 and sell it today you would earn a total of 1,045 from holding WisdomTree Trust or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
WisdomTree Trust vs. EXT
Performance |
| Timeline |
| WisdomTree Trust |
| EXT |
Risk-Adjusted Performance
Weakest
Weak | Strong |
WisdomTree Trust and EXT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Trust and EXT
The main advantage of trading using opposite WisdomTree Trust and EXT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Trust position performs unexpectedly, EXT 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 EXT will offset losses from the drop in EXT's long position.| WisdomTree Trust vs. Fidelity Small Mid Factor | WisdomTree Trust vs. ProShares SP MidCap | WisdomTree Trust vs. iShares Russell 2500 | WisdomTree Trust vs. Invesco SP 500 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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