Correlation Between Bitwise Funds and WisdomTree International

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

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

Diversification Opportunities for Bitwise Funds and WisdomTree International

0.27

Correlation Coefficient

Bitwise Funds  WisdomTree International

Modest diversification

The 3 months correlation between Bitwise and WisdomTree is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and WisdomTree International MidCa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Bitwise Funds 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 Bitwise Funds Trust are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and WisdomTree International go up and down completely randomly.

Pair Corralation between Bitwise Funds and WisdomTree International

Given the investment horizon of 90 days Bitwise Funds is expected to generate 11.67 times less return on investment than WisdomTree International. In addition to that, Bitwise Funds is 3.71 times more volatile than WisdomTree International MidCap. It trades about 0.01 of its total potential returns per unit of risk. WisdomTree International MidCap is currently generating about 0.3 per unit of volatility. If you would invest  6,840  in WisdomTree International MidCap on April 28, 2025 and sell it today you would earn a total of  805.00  from holding WisdomTree International MidCap or generate 11.77% return on investment over 90 days.

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

Bitwise Funds Trust  vs.  WisdomTree International MidCa

Bitwise Funds Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitwise Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bitwise Funds is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

WisdomTree International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree International MidCap are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, WisdomTree International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bitwise Funds and WisdomTree International

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

The idea behind Bitwise Funds Trust and WisdomTree International MidCap 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.