Correlation Between WisdomTree Japan and ProShares Metaverse
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and ProShares Metaverse 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 Japan and ProShares Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Japan Hedged and ProShares Metaverse ETF, you can compare the effects of market volatilities on WisdomTree Japan and ProShares Metaverse 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 Japan with a short position of ProShares Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and ProShares Metaverse.
Diversification Opportunities for WisdomTree Japan and ProShares Metaverse
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and ProShares is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and ProShares Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Metaverse ETF and WisdomTree Japan 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 Japan Hedged are associated (or correlated) with ProShares Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Metaverse ETF has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and ProShares Metaverse go up and down completely randomly.
Pair Corralation between WisdomTree Japan and ProShares Metaverse
Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 0.58 times more return on investment than ProShares Metaverse. However, WisdomTree Japan Hedged is 1.71 times less risky than ProShares Metaverse. It trades about 0.33 of its potential returns per unit of risk. ProShares Metaverse ETF is currently generating about -0.06 per unit of risk. If you would invest 13,906 in WisdomTree Japan Hedged on November 30, 2025 and sell it today you would earn a total of 3,052 from holding WisdomTree Japan Hedged or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. ProShares Metaverse ETF
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| ProShares Metaverse ETF |
WisdomTree Japan and ProShares Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and ProShares Metaverse
The main advantage of trading using opposite WisdomTree Japan and ProShares Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, ProShares Metaverse 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 Metaverse will offset losses from the drop in ProShares Metaverse's long position.| WisdomTree Japan vs. Managed Portfolio Series | WisdomTree Japan vs. ProShares Ultra Utilities | WisdomTree Japan vs. Series Portfolios Trust | WisdomTree Japan vs. JP Morgan Exchange Traded |
| ProShares Metaverse vs. Advisor Managed Portfolios | ProShares Metaverse vs. CYBER HORNET SP | ProShares Metaverse vs. Invesco ESG NASDAQ | ProShares Metaverse vs. Gammaroad Market Navigation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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