Correlation Between WisdomTree Efficient and ProShares
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and ProShares 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 Efficient and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Efficient Gold and ProShares On Demand ETF, you can compare the effects of market volatilities on WisdomTree Efficient and ProShares 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 Efficient with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and ProShares.
Diversification Opportunities for WisdomTree Efficient and ProShares
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and ProShares is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and ProShares On Demand ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares On Demand and WisdomTree Efficient 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 Efficient Gold are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares On Demand has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and ProShares go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and ProShares
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 3.39 times more return on investment than ProShares. However, WisdomTree Efficient is 3.39 times more volatile than ProShares On Demand ETF. It trades about 0.17 of its potential returns per unit of risk. ProShares On Demand ETF is currently generating about -0.18 per unit of risk. If you would invest 8,079 in WisdomTree Efficient Gold on November 19, 2025 and sell it today you would earn a total of 4,220 from holding WisdomTree Efficient Gold or generate 52.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. ProShares On Demand ETF
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| ProShares On Demand |
WisdomTree Efficient and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and ProShares
The main advantage of trading using opposite WisdomTree Efficient and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, ProShares 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 will offset losses from the drop in ProShares' long position.| WisdomTree Efficient vs. VanEck India Growth | WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology |
| ProShares vs. ProShares Big Data | ProShares vs. PGIM Nasdaq 100 Buffer | ProShares vs. iShares ESG MSCI | ProShares vs. Tidal Trust I |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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