Correlation Between WisdomTree Zinc and WisdomTree DAX
Can any of the company-specific risk be diversified away by investing in both WisdomTree Zinc and WisdomTree DAX 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 Zinc and WisdomTree DAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Zinc and WisdomTree DAX 30, you can compare the effects of market volatilities on WisdomTree Zinc and WisdomTree DAX 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 Zinc with a short position of WisdomTree DAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Zinc and WisdomTree DAX.
Diversification Opportunities for WisdomTree Zinc and WisdomTree DAX
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Zinc and WisdomTree DAX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree DAX 30 and WisdomTree Zinc 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 Zinc are associated (or correlated) with WisdomTree DAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree DAX 30 has no effect on the direction of WisdomTree Zinc i.e., WisdomTree Zinc and WisdomTree DAX go up and down completely randomly.
Pair Corralation between WisdomTree Zinc and WisdomTree DAX
Assuming the 90 days trading horizon WisdomTree Zinc is expected to generate 0.56 times more return on investment than WisdomTree DAX. However, WisdomTree Zinc is 1.77 times less risky than WisdomTree DAX. It trades about 0.11 of its potential returns per unit of risk. WisdomTree DAX 30 is currently generating about 0.04 per unit of risk. If you would invest 1,021 in WisdomTree Zinc on October 27, 2025 and sell it today you would earn a total of 85.00 from holding WisdomTree Zinc or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Zinc vs. WisdomTree DAX 30
Performance |
| Timeline |
| WisdomTree Zinc |
| WisdomTree DAX 30 |
WisdomTree Zinc and WisdomTree DAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Zinc and WisdomTree DAX
The main advantage of trading using opposite WisdomTree Zinc and WisdomTree DAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Zinc position performs unexpectedly, WisdomTree DAX 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 DAX will offset losses from the drop in WisdomTree DAX's long position.| WisdomTree Zinc vs. Franklin LibertyQ Emerging | WisdomTree Zinc vs. GraniteShares 3x Long | WisdomTree Zinc vs. GraniteShares 3x Long | WisdomTree Zinc vs. Leverage Shares 3x |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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