Correlation Between ProShares VIX and WisdomTree China

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Can company-specific risk be reduced by holding ProShares VIX Short Term and WisdomTree China ex State Owned together? This module highlights the diversifiable risk of combining ProShares VIX Short Term and WisdomTree China ex State Owned and frames portfolio overlap.
Use this comparison to see whether ProShares VIX Short Term and WisdomTree China ex State Owned tend to move together or diverge across regimes. You can also test a long ProShares VIX and short WisdomTree China structure to evaluate relative-value behavior. Review volatility patterns in ProShares VIX and WisdomTree China. Go to your portfolio center

Diversification Opportunities for ProShares VIX and WisdomTree China

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between ProShares and WisdomTree is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and WisdomTree China ex State Owne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree China and ProShares VIX 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 VIX Short Term are associated (or correlated) with WisdomTree China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree China has no effect on the direction of ProShares VIX i.e., ProShares VIX and WisdomTree China go up and down completely randomly.

Pair Corralation between ProShares VIX and WisdomTree China

Given the investment horizon of 90 days ProShares VIX Short Term is expected to generate 3.27 times more return on investment than WisdomTree China. However, ProShares VIX is 3.27 times more volatile than WisdomTree China ex State Owned. It trades about 0.05 of its potential returns per unit of risk. WisdomTree China ex State Owned is currently generating about -0.08 per unit of risk. If you would invest 2,906 in ProShares VIX Short Term on December 10, 2025 and sell it today you would earn a total of 211.00 from holding ProShares VIX Short Term or generate 7.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ProShares VIX Short Term  vs.  WisdomTree China ex State Owne

 Performance 
       Timeline  
ProShares VIX Short 
Risk-Adjusted Performance
Soft
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on ProShares VIX Short Term rank lower than 3% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. Despite somewhat weak basic indicators, ProShares VIX may actually be approaching a critical reversion point that can send shares even higher in April 2026.
WisdomTree China 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree China ex State Owned generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of rather sound basic indicators, WisdomTree China is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ProShares VIX and WisdomTree China Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares VIX and WisdomTree China

A paired position in ProShares VIX and WisdomTree China 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 information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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