Correlation Between WisdomTree 9060 and Aptus Defined

Can any of the company-specific risk be diversified away by investing in both WisdomTree 9060 and Aptus Defined 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 9060 and Aptus Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WisdomTree 9060 Balanced and Aptus Defined Risk, you can compare the effects of market volatilities on WisdomTree 9060 and Aptus Defined 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 9060 with a short position of Aptus Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree 9060 and Aptus Defined.

Diversification Opportunities for WisdomTree 9060 and Aptus Defined

0.97

Correlation Coefficient

WisdomTree 9060  Aptus Defined

Almost no diversification

The 3 months correlation between WisdomTree and Aptus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree 9060 Balanced and Aptus Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Defined Risk and WisdomTree 9060 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 9060 Balanced are associated (or correlated) with Aptus Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Defined Risk has no effect on the direction of WisdomTree 9060 i.e., WisdomTree 9060 and Aptus Defined go up and down completely randomly.

Pair Corralation between WisdomTree 9060 and Aptus Defined

Given the investment horizon of 90 days WisdomTree 9060 Balanced is expected to generate 1.37 times more return on investment than Aptus Defined. However, WisdomTree 9060 is 1.37 times more volatile than Aptus Defined Risk. It trades about 0.22 of its potential returns per unit of risk. Aptus Defined Risk is currently generating about 0.17 per unit of risk. If you would invest  4,546  in WisdomTree 9060 Balanced on May 4, 2025 and sell it today you would earn a total of  489.00  from holding WisdomTree 9060 Balanced or generate 10.76% return on investment over 90 days.

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

WisdomTree 9060 Balanced  vs.  Aptus Defined Risk

WisdomTree 9060 Balanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree 9060 Balanced are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, WisdomTree 9060 may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Aptus Defined Risk

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aptus Defined Risk are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Aptus Defined is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with WisdomTree 9060 and Aptus Defined

The main advantage of trading using opposite WisdomTree 9060 and Aptus Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree 9060 position performs unexpectedly, Aptus Defined 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 Aptus Defined will offset losses from the drop in Aptus Defined's long position.

The idea behind WisdomTree 9060 Balanced and Aptus Defined Risk 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.