Correlation Between Vast Renewables and Wisdomtree Digital

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

By analyzing existing cross correlation between Vast Renewables Limited and Wisdomtree Digital Trust, you can compare the effects of market volatilities on Vast Renewables and Wisdomtree Digital 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 Vast Renewables with a short position of Wisdomtree Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vast Renewables and Wisdomtree Digital.

Diversification Opportunities for Vast Renewables and Wisdomtree Digital

-0.62

Correlation Coefficient

Vast Renewables  Wisdomtree Digital

Excellent diversification

The 3 months correlation between Vast and Wisdomtree is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Vast Renewables Limited and Wisdomtree Digital Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisdomtree Digital Trust and Vast Renewables 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 Vast Renewables Limited are associated (or correlated) with Wisdomtree Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisdomtree Digital Trust has no effect on the direction of Vast Renewables i.e., Vast Renewables and Wisdomtree Digital go up and down completely randomly.

Pair Corralation between Vast Renewables and Wisdomtree Digital

Given the investment horizon of 90 days Vast Renewables Limited is expected to under-perform the Wisdomtree Digital. In addition to that, Vast Renewables is 17.42 times more volatile than Wisdomtree Digital Trust. It trades about -0.36 of its total potential returns per unit of risk. Wisdomtree Digital Trust is currently generating about 0.25 per unit of volatility. If you would invest  1,933  in Wisdomtree Digital Trust on May 17, 2025 and sell it today you would earn a total of  263.00  from holding Wisdomtree Digital Trust or generate 13.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	19.35%
Values	Daily Returns

Vast Renewables Limited  vs.  Wisdomtree Digital Trust

Vast Renewables

Risk-Adjusted Performance

Weakest

Over the last 90 days Vast Renewables Limited 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 September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Wisdomtree Digital Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wisdomtree Digital Trust are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical indicators, Wisdomtree Digital showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vast Renewables and Wisdomtree Digital

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

The idea behind Vast Renewables Limited and Wisdomtree Digital 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.