Correlation Between ZKB Silver and WisdomTree Europe
Can any of the company-specific risk be diversified away by investing in both ZKB Silver and WisdomTree Europe 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 ZKB Silver and WisdomTree Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZKB Silver ETF and WisdomTree Europe SmallCap, you can compare the effects of market volatilities on ZKB Silver and WisdomTree Europe 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 ZKB Silver with a short position of WisdomTree Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Silver and WisdomTree Europe.
Diversification Opportunities for ZKB Silver and WisdomTree Europe
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZKB and WisdomTree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Silver ETF and WisdomTree Europe SmallCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe and ZKB Silver 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 ZKB Silver ETF are associated (or correlated) with WisdomTree Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe has no effect on the direction of ZKB Silver i.e., ZKB Silver and WisdomTree Europe go up and down completely randomly.
Pair Corralation between ZKB Silver and WisdomTree Europe
Assuming the 90 days trading horizon ZKB Silver ETF is expected to generate 15.74 times more return on investment than WisdomTree Europe. However, ZKB Silver is 15.74 times more volatile than WisdomTree Europe SmallCap. It trades about 0.16 of its potential returns per unit of risk. WisdomTree Europe SmallCap is currently generating about 0.51 per unit of risk. If you would invest 8,800 in ZKB Silver ETF on November 22, 2025 and sell it today you would earn a total of 4,506 from holding ZKB Silver ETF or generate 51.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.31% |
| Values | Daily Returns |
ZKB Silver ETF vs. WisdomTree Europe SmallCap
Performance |
| Timeline |
| ZKB Silver ETF |
| WisdomTree Europe |
ZKB Silver and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZKB Silver and WisdomTree Europe
The main advantage of trading using opposite ZKB Silver and WisdomTree Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Silver position performs unexpectedly, WisdomTree Europe 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 Europe will offset losses from the drop in WisdomTree Europe's long position.| ZKB Silver vs. iShares Corp Bond | ZKB Silver vs. iShares MSCI AC | ZKB Silver vs. Lyxor MSCI Emerging | ZKB Silver vs. iShares Global Inflation |
| WisdomTree Europe vs. HSBC MSCI Emerging | WisdomTree Europe vs. UBS ETF plc | WisdomTree Europe vs. Amundi Index Solutions | WisdomTree Europe vs. SPDR Bloomberg 1 3 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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