Correlation Between ProShares Big and WisdomTree India

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Can any of the company-specific risk be diversified away by investing in both ProShares Big and WisdomTree India 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 Big and WisdomTree India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Big Data and WisdomTree India Hedged, you can compare the effects of market volatilities on ProShares Big and WisdomTree India 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 Big with a short position of WisdomTree India. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Big and WisdomTree India.

Diversification Opportunities for ProShares Big and WisdomTree India

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between ProShares and WisdomTree is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Big Data and WisdomTree India Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree India Hedged and ProShares Big 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 Big Data are associated (or correlated) with WisdomTree India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree India Hedged has no effect on the direction of ProShares Big i.e., ProShares Big and WisdomTree India go up and down completely randomly.

Pair Corralation between ProShares Big and WisdomTree India

Considering the 90-day investment horizon ProShares Big Data is expected to under-perform the WisdomTree India. In addition to that, ProShares Big is 2.7 times more volatile than WisdomTree India Hedged. It trades about -0.19 of its total potential returns per unit of risk. WisdomTree India Hedged is currently generating about -0.03 per unit of volatility. If you would invest  4,166  in WisdomTree India Hedged on November 4, 2025 and sell it today you would lose (44.00) from holding WisdomTree India Hedged or give up 1.06% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.39%
ValuesDaily Returns

ProShares Big Data  vs.  WisdomTree India Hedged

 Performance 
       Timeline  
ProShares Big Data 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ProShares Big Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in March 2026. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.
WisdomTree India Hedged 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree India Hedged has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, WisdomTree India is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

ProShares Big and WisdomTree India Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares Big and WisdomTree India

The main advantage of trading using opposite ProShares Big and WisdomTree India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Big position performs unexpectedly, WisdomTree India 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 India will offset losses from the drop in WisdomTree India's long position.
The idea behind ProShares Big Data and WisdomTree India Hedged 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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