Correlation Between WisdomTree BioRevolution and Global X

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

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

Diversification Opportunities for WisdomTree BioRevolution and Global X

0.98

Correlation Coefficient

WisdomTree BioRevolution  Global X

Almost no diversification

The 3 months correlation between WisdomTree and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree BioRevolution and Global X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Genomics and WisdomTree BioRevolution 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 BioRevolution are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Genomics has no effect on the direction of WisdomTree BioRevolution i.e., WisdomTree BioRevolution and Global X go up and down completely randomly.

Pair Corralation between WisdomTree BioRevolution and Global X

Given the investment horizon of 90 days WisdomTree BioRevolution is expected to generate 1.17 times less return on investment than Global X. But when comparing it to its historical volatility, WisdomTree BioRevolution is 1.06 times less risky than Global X. It trades about 0.07 of its potential returns per unit of risk. Global X Genomics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  819.00  in Global X Genomics on May 2, 2025 and sell it today you would earn a total of  68.00  from holding Global X Genomics or generate 8.3% return on investment over 90 days.

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

WisdomTree BioRevolution  vs.  Global X Genomics

WisdomTree BioRevolution

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree BioRevolution are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, WisdomTree BioRevolution may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Global X Genomics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Genomics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with WisdomTree BioRevolution and Global X

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

The idea behind WisdomTree BioRevolution and Global X Genomics 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.