Correlation Between Invesco QQQ and WisdomTree Managed
Can any of the company-specific risk be diversified away by investing in both Invesco QQQ and WisdomTree Managed 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 Invesco QQQ and WisdomTree Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco QQQ Trust and WisdomTree Managed Futures, you can compare the effects of market volatilities on Invesco QQQ and WisdomTree Managed 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 Invesco QQQ with a short position of WisdomTree Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco QQQ and WisdomTree Managed.
Diversification Opportunities for Invesco QQQ and WisdomTree Managed
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and WisdomTree is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Invesco QQQ Trust and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed and Invesco QQQ 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 Invesco QQQ Trust are associated (or correlated) with WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of Invesco QQQ i.e., Invesco QQQ and WisdomTree Managed go up and down completely randomly.
Pair Corralation between Invesco QQQ and WisdomTree Managed
Considering the 90-day investment horizon Invesco QQQ is expected to generate 1.11 times less return on investment than WisdomTree Managed. In addition to that, Invesco QQQ is 2.2 times more volatile than WisdomTree Managed Futures. It trades about 0.02 of its total potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.06 per unit of volatility. If you would invest 3,738 in WisdomTree Managed Futures on October 4, 2025 and sell it today you would earn a total of 64.00 from holding WisdomTree Managed Futures or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco QQQ Trust vs. WisdomTree Managed Futures
Performance |
| Timeline |
| Invesco QQQ Trust |
| WisdomTree Managed |
Invesco QQQ and WisdomTree Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco QQQ and WisdomTree Managed
The main advantage of trading using opposite Invesco QQQ and WisdomTree Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco QQQ position performs unexpectedly, WisdomTree Managed 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 Managed will offset losses from the drop in WisdomTree Managed's long position.| Invesco QQQ vs. Vanguard Growth Index | Invesco QQQ vs. Vanguard Growth Index | Invesco QQQ vs. Vanguard Institutional Index | Invesco QQQ vs. Vanguard Total Bond |
| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |