Correlation Between ProShares Investment and WisdomTree Managed
Can any of the company-specific risk be diversified away by investing in both ProShares Investment and WisdomTree Managed 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 Investment and WisdomTree Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Investment GradeInterest and WisdomTree Managed Futures, you can compare the effects of market volatilities on ProShares Investment and WisdomTree Managed 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 Investment with a short position of WisdomTree Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Investment and WisdomTree Managed.
Diversification Opportunities for ProShares Investment and WisdomTree Managed
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Investment GradeInte and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed and ProShares Investment 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 Investment GradeInterest are associated (or correlated) with WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of ProShares Investment i.e., ProShares Investment and WisdomTree Managed go up and down completely randomly.
Pair Corralation between ProShares Investment and WisdomTree Managed
Given the investment horizon of 90 days ProShares Investment is expected to generate 2.29 times less return on investment than WisdomTree Managed. But when comparing it to its historical volatility, ProShares Investment GradeInterest is 2.99 times less risky than WisdomTree Managed. It trades about 0.11 of its potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,755 in WisdomTree Managed Futures on November 24, 2025 and sell it today you would earn a total of 129.00 from holding WisdomTree Managed Futures or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Investment GradeInte vs. WisdomTree Managed Futures
Performance |
| Timeline |
| ProShares Investment |
| WisdomTree Managed |
ProShares Investment and WisdomTree Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Investment and WisdomTree Managed
The main advantage of trading using opposite ProShares Investment and WisdomTree Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Investment position performs unexpectedly, WisdomTree Managed 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 Managed will offset losses from the drop in WisdomTree Managed's long position.| ProShares Investment vs. ProShares High YieldInterest | ProShares Investment vs. BlackRock Total Return | ProShares Investment vs. Return Stacked Stocks | ProShares Investment vs. Simplify Exchange Traded |
| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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