Correlation Between Global X and WisdomTree Battery

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

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

Diversification Opportunities for Global X and WisdomTree Battery

-0.06

Correlation Coefficient

Global X  WisdomTree Battery

Good diversification

The 3 months correlation between Global and WisdomTree is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Global X Disruptive and WisdomTree Battery Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Battery Value and Global X 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 Global X Disruptive 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 Value has no effect on the direction of Global X i.e., Global X and WisdomTree Battery go up and down completely randomly.

Pair Corralation between Global X and WisdomTree Battery

Given the investment horizon of 90 days Global X Disruptive is expected to generate 1.23 times more return on investment than WisdomTree Battery. However, Global X is 1.23 times more volatile than WisdomTree Battery Value. It trades about 0.24 of its potential returns per unit of risk. WisdomTree Battery Value is currently generating about 0.15 per unit of risk. If you would invest  1,438  in Global X Disruptive on May 3, 2025 and sell it today you would earn a total of  346.00  from holding Global X Disruptive or generate 24.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	58.06%
Values	Daily Returns

Global X Disruptive  vs.  WisdomTree Battery Value

Global X Disruptive

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Disruptive are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Global X unveiled solid returns over the last few months and may actually be approaching a breakup point.

WisdomTree Battery Value

Risk-Adjusted Performance

Good

Over the last 90 days WisdomTree Battery Value has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, WisdomTree Battery may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global X and WisdomTree Battery

The main advantage of trading using opposite Global X and WisdomTree Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Disruptive and WisdomTree Battery Value 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.