Correlation Between WisdomTree Investments and Gold Road

Can any of the company-specific risk be diversified away by investing in both WisdomTree Investments and Gold Road 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 Investments and Gold Road into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WisdomTree Investments and Gold Road Resources, you can compare the effects of market volatilities on WisdomTree Investments and Gold Road 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 Investments with a short position of Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Investments and Gold Road.

Diversification Opportunities for WisdomTree Investments and Gold Road

0.47

Correlation Coefficient

WisdomTree Investments  Gold Road

Very weak diversification

The 3 months correlation between WisdomTree and Gold is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Investments and Gold Road Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Road Resources and WisdomTree Investments 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 Investments are associated (or correlated) with Gold Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Road Resources has no effect on the direction of WisdomTree Investments i.e., WisdomTree Investments and Gold Road go up and down completely randomly.

Pair Corralation between WisdomTree Investments and Gold Road

Assuming the 90 days horizon WisdomTree Investments is expected to generate 3.07 times less return on investment than Gold Road. In addition to that, WisdomTree Investments is 1.19 times more volatile than Gold Road Resources. It trades about 0.04 of its total potential returns per unit of risk. Gold Road Resources is currently generating about 0.15 per unit of volatility. If you would invest  156.00  in Gold Road Resources on July 15, 2025 and sell it today you would earn a total of  33.00  from holding Gold Road Resources or generate 21.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	90.77%
Values	Daily Returns

WisdomTree Investments  vs.  Gold Road Resources

WisdomTree Investments

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Investments are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, WisdomTree Investments may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Gold Road Resources

Risk-Adjusted Performance

Good

Over the last 90 days Gold Road Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Gold Road reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WisdomTree Investments and Gold Road

The main advantage of trading using opposite WisdomTree Investments and Gold Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Investments position performs unexpectedly, Gold Road 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 Gold Road will offset losses from the drop in Gold Road's long position.

The idea behind WisdomTree Investments and Gold Road Resources 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.