Correlation Between ProShares Trust and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both ProShares Trust 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 Trust 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 Trust ProShares and WisdomTree International High, you can compare the effects of market volatilities on ProShares Trust 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 Trust with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and WisdomTree International.
Diversification Opportunities for ProShares Trust and WisdomTree International
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and WisdomTree is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust ProShares 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 Trust 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 Trust ProShares 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 Trust i.e., ProShares Trust and WisdomTree International go up and down completely randomly.
Pair Corralation between ProShares Trust and WisdomTree International
Allowing for the 90-day total investment horizon ProShares Trust is expected to generate 1.25 times less return on investment than WisdomTree International. But when comparing it to its historical volatility, ProShares Trust ProShares is 2.55 times less risky than WisdomTree International. It trades about 0.21 of its potential returns per unit of risk. WisdomTree International High is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,478 in WisdomTree International High on October 19, 2025 and sell it today you would earn a total of 1,774 from holding WisdomTree International High or generate 51.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 28.69% |
| Values | Daily Returns |
ProShares Trust ProShares vs. WisdomTree International High
Performance |
| Timeline |
| ProShares Trust ProShares |
| WisdomTree International |
ProShares Trust and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and WisdomTree International
The main advantage of trading using opposite ProShares Trust and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust 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 Trust vs. Invesco Exchange Traded | ProShares Trust vs. iShares Emerging Markets | ProShares Trust vs. Global X Funds | ProShares Trust vs. Invesco High Yield |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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