Correlation Between WisdomTree Physical and SSGA SPDR
Can any of the company-specific risk be diversified away by investing in both WisdomTree Physical and SSGA SPDR 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 Physical and SSGA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Physical Platinum and SSGA SPDR ETFS, you can compare the effects of market volatilities on WisdomTree Physical and SSGA SPDR 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 Physical with a short position of SSGA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Physical and SSGA SPDR.
Diversification Opportunities for WisdomTree Physical and SSGA SPDR
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and SSGA is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Physical Platinum and SSGA SPDR ETFS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA SPDR ETFS 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 Platinum are associated (or correlated) with SSGA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA SPDR ETFS has no effect on the direction of WisdomTree Physical i.e., WisdomTree Physical and SSGA SPDR go up and down completely randomly.
Pair Corralation between WisdomTree Physical and SSGA SPDR
Assuming the 90 days trading horizon WisdomTree Physical Platinum is expected to generate 21.36 times more return on investment than SSGA SPDR. However, WisdomTree Physical is 21.36 times more volatile than SSGA SPDR ETFS. It trades about 0.12 of its potential returns per unit of risk. SSGA SPDR ETFS is currently generating about 0.04 per unit of risk. If you would invest 8,141 in WisdomTree Physical Platinum on November 5, 2025 and sell it today you would earn a total of 8,195 from holding WisdomTree Physical Platinum or generate 100.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Physical Platinum vs. SSGA SPDR ETFS
Performance |
| Timeline |
| WisdomTree Physical |
| SSGA SPDR ETFS |
WisdomTree Physical and SSGA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Physical and SSGA SPDR
The main advantage of trading using opposite WisdomTree Physical and SSGA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Physical position performs unexpectedly, SSGA SPDR 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 SSGA SPDR will offset losses from the drop in SSGA SPDR's long position.| WisdomTree Physical vs. iShares MSCI World | WisdomTree Physical vs. iShares Property Yield | WisdomTree Physical vs. UBSFund Solutions MSCI | WisdomTree Physical vs. Ishares IV PLC |
| SSGA SPDR vs. LG Russell 2000 | SSGA SPDR vs. iShares MSCI EM | SSGA SPDR vs. VanEck Multi Asset Growth | SSGA SPDR vs. iShares III Public |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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