Correlation Between ProShares Merger and WisdomTree Trust

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How much single-name risk can be diversified by combining ProShares Merger ETF and WisdomTree Trust ? This module highlights the diversifiable risk of combining ProShares Merger ETF and WisdomTree Trust and frames portfolio overlap.
Pair correlation for ProShares Merger ETF and WisdomTree Trust can improve allocation efficiency and manage overlap risk. You can also test a long ProShares Merger and short WisdomTree Trust structure to evaluate relative-value behavior. Review volatility patterns in ProShares Merger and WisdomTree Trust. Go to your portfolio center

Diversification Opportunities for ProShares Merger and WisdomTree Trust

0.55
  Correlation Coefficient
Very weak diversification
The 3 months correlation between ProShares and WisdomTree is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Merger ETF and WisdomTree Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Trust and ProShares Merger 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 ProShares Merger ETF are associated (or correlated) with WisdomTree Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Trust has no effect on the direction of ProShares Merger i.e., ProShares Merger and WisdomTree Trust go up and down completely randomly.

Pair Corralation between ProShares Merger and WisdomTree Trust

Given the investment horizon of 90 days ProShares Merger ETF is expected to generate 0.27 times more return on investment than WisdomTree Trust. However, ProShares Merger ETF is 3.71 times less risky than WisdomTree Trust. It trades about 0.04 of its potential returns per unit of risk. WisdomTree Trust is currently generating about -0.06 per unit of risk. If you had invested $ 4,447 in ProShares Merger ETF on December 19, 2025 and sold it today you would have earned a total of $ 26.00 from holding ProShares Merger ETF or generated 0.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy63.33%
ValuesDaily Returns

ProShares Merger ETF  vs.  WisdomTree Trust

 Performance 
       Timeline  
ProShares Merger ETF 
Risk-Adjusted Performance
Soft
 
Weak
 
Strong
On a recent 90-day basis, ProShares Merger ETF sits below 2% of comparable global equities and portfolios in risk-adjusted performance. The main point is that return should be judged together with the volatility required to produce it. Even with relatively invariable technical and fundamental indicators, ProShares Merger is not utilizing all of its potential. The current price agitation may contribute to short-term losses for retail investors. ...more
WisdomTree Trust 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree Trust generated negative risk-adjusted returns and added little value for investors with long positions. Business context should still be reviewed beside valuation, volatility, and current market behavior. In spite of comparatively stable essential indicators, WisdomTree Trust is not utilizing all of its potential. The recent price uproar may contribute to short-horizon losses for private investors. ...more

ProShares Merger and WisdomTree Trust Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares Merger and WisdomTree Trust

A paired position in ProShares Merger and WisdomTree Trust is useful when investors want a more relative-value expression than a simple directional trade. The stronger process checks whether the correlation is stable enough to justify the hedge logic before the trade is sized.
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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