Correlation Between Fastly and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both Fastly and WisdomTree Global 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 Fastly and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastly Class A and WisdomTree Global High, you can compare the effects of market volatilities on Fastly and WisdomTree Global 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 Fastly with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and WisdomTree Global.
Diversification Opportunities for Fastly and WisdomTree Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fastly and WisdomTree is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Class A and WisdomTree Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global High and Fastly 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 Fastly Class A are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global High has no effect on the direction of Fastly i.e., Fastly and WisdomTree Global go up and down completely randomly.
Pair Corralation between Fastly and WisdomTree Global
Given the investment horizon of 90 days Fastly Class A is expected to generate 18.71 times more return on investment than WisdomTree Global. However, Fastly is 18.71 times more volatile than WisdomTree Global High. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Global High is currently generating about 0.4 per unit of risk. If you would invest 1,165 in Fastly Class A on December 2, 2025 and sell it today you would earn a total of 885.00 from holding Fastly Class A or generate 75.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastly Class A vs. WisdomTree Global High
Performance |
| Timeline |
| Fastly Class A |
| WisdomTree Global High |
Risk-Adjusted Performance
High
Weak | Strong |
Fastly and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastly and WisdomTree Global
The main advantage of trading using opposite Fastly and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, WisdomTree Global 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 Global will offset losses from the drop in WisdomTree Global's long position.The idea behind Fastly Class A and WisdomTree Global High 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.| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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