Correlation Between WisdomTree Managed and DGA Core

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

By analyzing existing cross correlation between WisdomTree Managed Futures and DGA Core Plus, you can compare the effects of market volatilities on WisdomTree Managed and DGA Core 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 Managed with a short position of DGA Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and DGA Core.

Diversification Opportunities for WisdomTree Managed and DGA Core

0.85

Correlation Coefficient

WisdomTree Managed  DGA Core

Very poor diversification

The 3 months correlation between WisdomTree and DGA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and DGA Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGA Core Plus and WisdomTree Managed 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 Managed Futures are associated (or correlated) with DGA Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGA Core Plus has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and DGA Core go up and down completely randomly.

Pair Corralation between WisdomTree Managed and DGA Core

Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 2.13 times more return on investment than DGA Core. However, WisdomTree Managed is 2.13 times more volatile than DGA Core Plus. It trades about 0.19 of its potential returns per unit of risk. DGA Core Plus is currently generating about 0.2 per unit of risk. If you would invest  3,786  in WisdomTree Managed Futures on October 11, 2025 and sell it today you would earn a total of  78.00  from holding WisdomTree Managed Futures or generate 2.06% return on investment over 90 days.

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

WisdomTree Managed Futures  vs.  DGA Core Plus

WisdomTree Managed

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Managed Futures are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, WisdomTree Managed is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

DGA Core Plus

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in DGA Core Plus are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, DGA Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with WisdomTree Managed and DGA Core

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

The idea behind WisdomTree Managed Futures and DGA Core Plus 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.