Correlation Between Cannae Holdings and WisdomTree

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

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

Diversification Opportunities for Cannae Holdings and WisdomTree

-0.06

Correlation Coefficient

Cannae Holdings  WisdomTree

Good diversification

The 3 months correlation between Cannae and WisdomTree is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree and Cannae Holdings 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 Cannae Holdings are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree has no effect on the direction of Cannae Holdings i.e., Cannae Holdings and WisdomTree go up and down completely randomly.

Pair Corralation between Cannae Holdings and WisdomTree

Given the investment horizon of 90 days Cannae Holdings is expected to under-perform the WisdomTree. In addition to that, Cannae Holdings is 1.13 times more volatile than WisdomTree. It trades about -0.11 of its total potential returns per unit of risk. WisdomTree is currently generating about -0.07 per unit of volatility. If you would invest  1,327  in WisdomTree on July 31, 2025 and sell it today you would lose (114.00) from holding WisdomTree or give up 8.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Cannae Holdings  vs.  WisdomTree

Cannae Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Cannae Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

WisdomTree

Risk-Adjusted Performance

Weakest

Over the last 90 days WisdomTree has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Cannae Holdings and WisdomTree

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

The idea behind Cannae Holdings and WisdomTree 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.