Correlation Between WisdomTree India and ProShares Metaverse

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Can any of the company-specific risk be diversified away by investing in both WisdomTree India and ProShares Metaverse 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 India and ProShares Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree India Hedged and ProShares Metaverse ETF, you can compare the effects of market volatilities on WisdomTree India and ProShares Metaverse 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 India with a short position of ProShares Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree India and ProShares Metaverse.

Diversification Opportunities for WisdomTree India and ProShares Metaverse

-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between WisdomTree and ProShares is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree India Hedged and ProShares Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Metaverse ETF and WisdomTree India 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 India Hedged are associated (or correlated) with ProShares Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Metaverse ETF has no effect on the direction of WisdomTree India i.e., WisdomTree India and ProShares Metaverse go up and down completely randomly.

Pair Corralation between WisdomTree India and ProShares Metaverse

Given the investment horizon of 90 days WisdomTree India Hedged is expected to under-perform the ProShares Metaverse. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree India Hedged is 2.59 times less risky than ProShares Metaverse. The etf trades about -0.03 of its potential returns per unit of risk. The ProShares Metaverse ETF is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  5,984  in ProShares Metaverse ETF on September 27, 2025 and sell it today you would earn a total of  190.00  from holding ProShares Metaverse ETF or generate 3.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

WisdomTree India Hedged  vs.  ProShares Metaverse ETF

 Performance 
       Timeline  
WisdomTree India Hedged 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree India Hedged are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, WisdomTree India is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
ProShares Metaverse ETF 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Metaverse ETF are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ProShares Metaverse is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

WisdomTree India and ProShares Metaverse Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree India and ProShares Metaverse

The main advantage of trading using opposite WisdomTree India and ProShares Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree India position performs unexpectedly, ProShares Metaverse 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 Metaverse will offset losses from the drop in ProShares Metaverse's long position.
The idea behind WisdomTree India Hedged and ProShares Metaverse ETF pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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