Correlation Between WisdomTree Efficient and ProShares Smart
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient and ProShares Smart 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 Smart 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 Smart Materials, you can compare the effects of market volatilities on WisdomTree Efficient and ProShares Smart 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 Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and ProShares Smart.
Diversification Opportunities for WisdomTree Efficient and ProShares Smart
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and ProShares Smart Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Smart Materials 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 Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Smart Materials has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and ProShares Smart go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and ProShares Smart
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 4.64 times more return on investment than ProShares Smart. However, WisdomTree Efficient is 4.64 times more volatile than ProShares Smart Materials. It trades about 0.17 of its potential returns per unit of risk. ProShares Smart Materials is currently generating about 0.33 per unit of risk. If you would invest 8,897 in WisdomTree Efficient Gold on November 27, 2025 and sell it today you would earn a total of 4,308 from holding WisdomTree Efficient Gold or generate 48.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. ProShares Smart Materials
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| ProShares Smart Materials |
WisdomTree Efficient and ProShares Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and ProShares Smart
The main advantage of trading using opposite WisdomTree Efficient and ProShares Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, ProShares Smart 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 Smart will offset losses from the drop in ProShares Smart's 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 Smart vs. USCF Sustainable Battery | ProShares Smart vs. Themes Natural Monopoly | ProShares Smart vs. ProShares SP Kensho | ProShares Smart vs. Horizon Nasdaq 100 Defined |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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