Correlation Between ProShares and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both ProShares and WisdomTree International 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 ProShares and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP MidCap and WisdomTree International High, you can compare the effects of market volatilities on ProShares and WisdomTree International 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 ProShares with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and WisdomTree International.
Diversification Opportunities for ProShares and WisdomTree International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP MidCap and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and ProShares 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 SP MidCap are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of ProShares i.e., ProShares and WisdomTree International go up and down completely randomly.
Pair Corralation between ProShares and WisdomTree International
Given the investment horizon of 90 days ProShares is expected to generate 1.5 times less return on investment than WisdomTree International. In addition to that, ProShares is 1.15 times more volatile than WisdomTree International High. It trades about 0.21 of its total potential returns per unit of risk. WisdomTree International High is currently generating about 0.37 per unit of volatility. If you would invest 4,928 in WisdomTree International High on November 25, 2025 and sell it today you would earn a total of 753.09 from holding WisdomTree International High or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares SP MidCap vs. WisdomTree International High
Performance |
| Timeline |
| ProShares SP MidCap |
| WisdomTree International |
ProShares and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and WisdomTree International
The main advantage of trading using opposite ProShares and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| ProShares vs. WHITEWOLF Publicly Listed | ProShares vs. John Hancock Exchange Traded | ProShares vs. Allspring Exchange Traded Funds | ProShares vs. ProShares Equities for |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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