Correlation Between CoinShares Physical and WisdomTree Ethereum

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How much single-name risk can be diversified by combining CoinShares Physical Bitcoin and WisdomTree Ethereum ETC? This analysis describes return linkage and the diversifiable risk of a joint position in CoinShares Physical Bitcoin and WisdomTree Ethereum ETC.
Analyze CoinShares Physical Bitcoin versus WisdomTree Ethereum ETC to see whether pair exposure lowers concentration risk or amplifies it. You can also test a long CoinShares Physical and short WisdomTree Ethereum structure to evaluate relative-value behavior. Review volatility patterns in CoinShares Physical and WisdomTree Ethereum. Go to your portfolio center

Diversification Opportunities for CoinShares Physical and WisdomTree Ethereum

0.92
  Correlation Coefficient
Almost no diversification
The 3 months correlation between CoinShares and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CoinShares Physical Bitcoin and WisdomTree Ethereum ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Ethereum ETC and CoinShares Physical 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 CoinShares Physical Bitcoin are associated (or correlated) with WisdomTree Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Ethereum ETC has no effect on the direction of CoinShares Physical i.e., CoinShares Physical and WisdomTree Ethereum go up and down completely randomly.

Pair Corralation between CoinShares Physical and WisdomTree Ethereum

Assuming the 90-day trading horizon CoinShares Physical Bitcoin is expected to generate 1.39 times more return on investment than WisdomTree Ethereum. However, CoinShares Physical is 1.39 times more volatile than WisdomTree Ethereum ETC. It trades about -0.04 of its potential returns per unit of risk. WisdomTree Ethereum ETC is currently generating about -0.1 per unit of risk. If you had invested 6,756 in CoinShares Physical Bitcoin on December 19, 2025 and sold it today you would have lost 1,365 from holding CoinShares Physical Bitcoin or given up 20.2% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

CoinShares Physical Bitcoin  vs.  WisdomTree Ethereum ETC

 Performance 
       Timeline  
CoinShares Physical 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
During the last 90 trading days, CoinShares Physical Bitcoin produced negative risk-adjusted performance, which signals weak return efficiency for investors with long positions. Used correctly, this score helps investors distinguish between raw price movement and actual return efficiency. In spite of uncertain performance in the last few months, the etf's basic indicators remain fairly stable, which may send shares a bit higher in April 2026. The latest fuss may also be a sign of long-term up-swing for the fund's sophisticated investors. ...more
WisdomTree Ethereum ETC 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree Ethereum ETC generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of abnormal performance in the last few months, the etf's basic indicators remain fairly stable, which may send shares a bit higher in April 2026. The latest fuss may also be a sign of long-term up-swing for the fund's sophisticated investors. ...more

CoinShares Physical and WisdomTree Ethereum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CoinShares Physical and WisdomTree Ethereum

Pair trading between CoinShares Physical and WisdomTree Ethereum can reduce some unsystematic risk by balancing one position against another. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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