Correlation Between WisdomTree Inflation and RBB Fund

Can any of the company-specific risk be diversified away by investing in both WisdomTree Inflation and RBB Fund 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 Inflation and RBB Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WisdomTree Inflation Plus and The RBB Fund, you can compare the effects of market volatilities on WisdomTree Inflation and RBB Fund 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 Inflation with a short position of RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Inflation and RBB Fund.

Diversification Opportunities for WisdomTree Inflation and RBB Fund

0.67

Correlation Coefficient

WisdomTree Inflation  RBB Fund

Poor diversification

The 3 months correlation between WisdomTree and RBB is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Inflation Plus and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund and WisdomTree Inflation 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 Inflation Plus are associated (or correlated) with RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of WisdomTree Inflation i.e., WisdomTree Inflation and RBB Fund go up and down completely randomly.

Pair Corralation between WisdomTree Inflation and RBB Fund

Given the investment horizon of 90 days WisdomTree Inflation is expected to generate 1.28 times less return on investment than RBB Fund. In addition to that, WisdomTree Inflation is 1.02 times more volatile than The RBB Fund. It trades about 0.2 of its total potential returns per unit of risk. The RBB Fund is currently generating about 0.27 per unit of volatility. If you would invest  1,015  in The RBB Fund on October 29, 2025 and sell it today you would earn a total of  132.00  from holding The RBB Fund or generate 13.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

WisdomTree Inflation Plus  vs.  The RBB Fund

WisdomTree Inflation Plus

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Inflation Plus are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting forward indicators, WisdomTree Inflation may actually be approaching a critical reversion point that can send shares even higher in February 2026.

RBB Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The RBB Fund are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, RBB Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WisdomTree Inflation and RBB Fund

The main advantage of trading using opposite WisdomTree Inflation and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Inflation position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.

The idea behind WisdomTree Inflation Plus and The RBB Fund 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.