Correlation Between WisdomTree India and ProShares MSCI

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Does pairing WisdomTree India Hedged with ProShares MSCI Emerging lower idiosyncratic risk? Use this page to interpret how WisdomTree India Hedged and ProShares MSCI Emerging interact and how much diversifiable risk remains.
Use this page to test whether WisdomTree India Hedged and ProShares MSCI Emerging provide true diversification or mostly duplicate risk. You can also test a long WisdomTree India and short ProShares MSCI structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree India and ProShares MSCI. Go to your portfolio center

Diversification Opportunities for WisdomTree India and ProShares MSCI

0.57
  Correlation Coefficient
Very weak diversification
The 3 months correlation between WisdomTree and ProShares is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree India Hedged and ProShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Emerging and WisdomTree India 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 India Hedged are associated (or correlated) with ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Emerging has no effect on the direction of WisdomTree India i.e., WisdomTree India and ProShares MSCI go up and down completely randomly.

Pair Corralation between WisdomTree India and ProShares MSCI

Given the investment horizon of 90 days WisdomTree India Hedged is expected to under-perform the ProShares MSCI. In addition to that, WisdomTree India is 1.13 times more volatile than ProShares MSCI Emerging. It trades about -0.17 of its total potential returns per unit of risk. ProShares MSCI Emerging is currently generating about -0.04 per unit of volatility. If you had invested $ 4,653 in ProShares MSCI Emerging on December 15, 2025 and sold it today you would have lost $ 91.00 from holding ProShares MSCI Emerging or given up 1.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

WisdomTree India Hedged  vs.  ProShares MSCI Emerging

 Performance 
       Timeline  
WisdomTree India Hedged 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
During the last 90 trading days, WisdomTree India Hedged produced negative risk-adjusted performance, which signals weak return efficiency for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. Despite latest weak performance, the etf's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the ETF's traders. ...more
ProShares MSCI Emerging 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, ProShares MSCI Emerging generated negative risk-adjusted returns and added little value for investors with long positions. The current category mapping is Diversified Emerging Mkts. In spite of fairly stable fundamental indicators, ProShares MSCI is not utilizing all of its potential. The latest price fuss may contribute to near-short-term losses for sophisticated investors. ...more

WisdomTree India and ProShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree India and ProShares MSCI

A paired position in WisdomTree India and ProShares MSCI is useful when investors want a more relative-value expression than a simple directional trade. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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