Correlation Between ZKB Silver and WisdomTree Battery

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Can any of the company-specific risk be diversified away by investing in both ZKB Silver and WisdomTree Battery 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 Battery 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 Battery Solutions, you can compare the effects of market volatilities on ZKB Silver and WisdomTree Battery 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 Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Silver and WisdomTree Battery.

Diversification Opportunities for ZKB Silver and WisdomTree Battery

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between ZKB and WisdomTree is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Silver ETF and WisdomTree Battery Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery 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 Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Battery has no effect on the direction of ZKB Silver i.e., ZKB Silver and WisdomTree Battery go up and down completely randomly.

Pair Corralation between ZKB Silver and WisdomTree Battery

Assuming the 90 days trading horizon ZKB Silver ETF is expected to generate 3.11 times more return on investment than WisdomTree Battery. However, ZKB Silver is 3.11 times more volatile than WisdomTree Battery Solutions. It trades about 0.15 of its potential returns per unit of risk. WisdomTree Battery Solutions is currently generating about 0.02 per unit of risk. If you would invest  9,285  in ZKB Silver ETF on November 12, 2025 and sell it today you would earn a total of  4,415  from holding ZKB Silver ETF or generate 47.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.31%
ValuesDaily Returns

ZKB Silver ETF  vs.  WisdomTree Battery Solutions

 Performance 
       Timeline  
ZKB Silver ETF 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ZKB Silver ETF are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, ZKB Silver sustained solid returns over the last few months and may actually be approaching a breakup point.
WisdomTree Battery 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Battery Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, WisdomTree Battery is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ZKB Silver and WisdomTree Battery Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZKB Silver and WisdomTree Battery

The main advantage of trading using opposite ZKB Silver and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Silver position performs unexpectedly, WisdomTree Battery 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 Battery will offset losses from the drop in WisdomTree Battery's long position.
The idea behind ZKB Silver ETF and WisdomTree Battery Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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