Correlation Between ProShares Trust and WisdomTree Siegel
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and WisdomTree Siegel 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 Siegel 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 Siegel Moderate, you can compare the effects of market volatilities on ProShares Trust and WisdomTree Siegel 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 Siegel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and WisdomTree Siegel.
Diversification Opportunities for ProShares Trust and WisdomTree Siegel
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust ProShares and WisdomTree Siegel Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Siegel 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 Siegel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Siegel has no effect on the direction of ProShares Trust i.e., ProShares Trust and WisdomTree Siegel go up and down completely randomly.
Pair Corralation between ProShares Trust and WisdomTree Siegel
Allowing for the 90-day total investment horizon ProShares Trust is expected to generate 2.49 times less return on investment than WisdomTree Siegel. But when comparing it to its historical volatility, ProShares Trust ProShares is 1.16 times less risky than WisdomTree Siegel. It trades about 0.11 of its potential returns per unit of risk. WisdomTree Siegel Moderate is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,189 in WisdomTree Siegel Moderate on November 27, 2025 and sell it today you would earn a total of 71.00 from holding WisdomTree Siegel Moderate or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust ProShares vs. WisdomTree Siegel Moderate
Performance |
| Timeline |
| ProShares Trust ProShares |
| WisdomTree Siegel |
ProShares Trust and WisdomTree Siegel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and WisdomTree Siegel
The main advantage of trading using opposite ProShares Trust and WisdomTree Siegel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, WisdomTree Siegel 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 Siegel will offset losses from the drop in WisdomTree Siegel'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 |
| WisdomTree Siegel vs. Wisdomtree Digital Trust | WisdomTree Siegel vs. Wisdomtree Digital Trust | WisdomTree Siegel vs. Wisdomtree Digital Trust | WisdomTree Siegel vs. Wisdomtree Digital Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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