Correlation Between WisdomTree Efficient and Bitwise Funds

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

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

Diversification Opportunities for WisdomTree Efficient and Bitwise Funds

-0.48

Correlation Coefficient

WisdomTree Efficient  Bitwise Funds

Very good diversification

The 3 months correlation between WisdomTree and Bitwise is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust and WisdomTree Efficient 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 Efficient Gold are associated (or correlated) with Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and Bitwise Funds go up and down completely randomly.

Pair Corralation between WisdomTree Efficient and Bitwise Funds

Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 0.92 times more return on investment than Bitwise Funds. However, WisdomTree Efficient Gold is 1.09 times less risky than Bitwise Funds. It trades about 0.15 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about -0.06 per unit of risk. If you would invest  7,628  in WisdomTree Efficient Gold on September 27, 2025 and sell it today you would earn a total of  2,719  from holding WisdomTree Efficient Gold or generate 35.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

WisdomTree Efficient Gold  vs.  Bitwise Funds Trust

WisdomTree Efficient Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Efficient Gold are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, WisdomTree Efficient displayed solid returns over the last few months and may actually be approaching a breakup point.

Bitwise Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Bitwise Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with WisdomTree Efficient and Bitwise Funds

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

The idea behind WisdomTree Efficient Gold and Bitwise Funds Trust 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.