Correlation Between WisdomTree Physical and 21Shares Ripple

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How much single-name risk can be diversified by combining WisdomTree Physical Bitcoin and 21Shares Ripple XRP? This analysis describes return linkage and the diversifiable risk of a joint position in WisdomTree Physical Bitcoin and 21Shares Ripple XRP.
Review WisdomTree Physical Bitcoin against 21Shares Ripple XRP to separate temporary co-movement from persistent structural correlation. You can also test a long WisdomTree Physical and short 21Shares Ripple structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Physical and 21Shares Ripple. Go to your portfolio center

Diversification Opportunities for WisdomTree Physical and 21Shares Ripple

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between WisdomTree and 21Shares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Bitcoin and 21Shares Ripple XRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Ripple XRP and WisdomTree 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 WisdomTree Physical Bitcoin are associated (or correlated) with 21Shares Ripple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Ripple XRP has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and 21Shares Ripple go up and down completely randomly.

Pair Corralation between WisdomTree Physical and 21Shares Ripple

Assuming the 90-day trading horizon WisdomTree Physical Bitcoin is expected to under-perform the 21Shares Ripple. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Physical Bitcoin is 1.36 times less risky than 21Shares Ripple. The etf trades about -0.01 of its potential returns per unit of risk. The 21Shares Ripple XRP is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you had invested 4,208 in 21Shares Ripple XRP on December 15, 2025 and sold it today you would have lost 1,085 from holding 21Shares Ripple XRP or given up 25.78% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

WisdomTree Physical Bitcoin  vs.  21Shares Ripple XRP

 Performance 
       Timeline  
WisdomTree Physical 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree Physical Bitcoin 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 latest abnormal performance, the etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund's sophisticated investors. ...more
21Shares Ripple XRP 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, 21Shares Ripple XRP 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 fairly stable basic indicators, 21Shares Ripple is not utilizing all of its potential. The latest price fuss may contribute to near-short-term losses for sophisticated investors. ...more

WisdomTree Physical and 21Shares Ripple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Physical and 21Shares Ripple

Pair trading between WisdomTree Physical and 21Shares Ripple 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 information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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