Correlation Between WisdomTree Global and ProShares Large
Can any of the company-specific risk be diversified away by investing in both WisdomTree Global and ProShares Large 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 WisdomTree Global and ProShares Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Global ex US and ProShares Large Cap, you can compare the effects of market volatilities on WisdomTree Global and ProShares Large 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 WisdomTree Global with a short position of ProShares Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Global and ProShares Large.
Diversification Opportunities for WisdomTree Global and ProShares Large
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Global ex US and ProShares Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Large Cap and WisdomTree Global 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 Global ex US are associated (or correlated) with ProShares Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Large Cap has no effect on the direction of WisdomTree Global i.e., WisdomTree Global and ProShares Large go up and down completely randomly.
Pair Corralation between WisdomTree Global and ProShares Large
Considering the 90-day investment horizon WisdomTree Global is expected to generate 1.66 times less return on investment than ProShares Large. But when comparing it to its historical volatility, WisdomTree Global ex US is 1.03 times less risky than ProShares Large. It trades about 0.05 of its potential returns per unit of risk. ProShares Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,446 in ProShares Large Cap on October 13, 2025 and sell it today you would earn a total of 2,624 from holding ProShares Large Cap or generate 48.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Global ex US vs. ProShares Large Cap
Performance |
| Timeline |
| WisdomTree Global |
| ProShares Large Cap |
WisdomTree Global and ProShares Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Global and ProShares Large
The main advantage of trading using opposite WisdomTree Global and ProShares Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Global position performs unexpectedly, ProShares Large 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 ProShares Large will offset losses from the drop in ProShares Large's long position.| WisdomTree Global vs. WisdomTree International High | WisdomTree Global vs. iShares Global Comm | WisdomTree Global vs. FlexShares Quality Dividend | WisdomTree Global vs. WisdomTree China ex State Owned |
| ProShares Large vs. ProShares Ultra Dow30 | ProShares Large vs. Invesco Actively Managed | ProShares Large vs. FlexShares Quality Dividend | ProShares Large vs. iShares ESG Screened |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |