Correlation Between WisdomTree International and ProShares Long
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and ProShares Long 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 International and ProShares Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Efficient and ProShares Long OnlineShort, you can compare the effects of market volatilities on WisdomTree International and ProShares Long 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 International with a short position of ProShares Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and ProShares Long.
Diversification Opportunities for WisdomTree International and ProShares Long
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and ProShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Effic and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin and WisdomTree International 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 International Efficient are associated (or correlated) with ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of WisdomTree International i.e., WisdomTree International and ProShares Long go up and down completely randomly.
Pair Corralation between WisdomTree International and ProShares Long
Given the investment horizon of 90 days WisdomTree International Efficient is expected to generate 0.66 times more return on investment than ProShares Long. However, WisdomTree International Efficient is 1.52 times less risky than ProShares Long. It trades about 0.12 of its potential returns per unit of risk. ProShares Long OnlineShort is currently generating about -0.12 per unit of risk. If you would invest 4,337 in WisdomTree International Efficient on December 4, 2025 and sell it today you would earn a total of 290.00 from holding WisdomTree International Efficient or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Effic vs. ProShares Long OnlineShort
Performance |
| Timeline |
| WisdomTree International |
| ProShares Long Onlin |
WisdomTree International and ProShares Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and ProShares Long
The main advantage of trading using opposite WisdomTree International and ProShares Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, ProShares Long 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 Long will offset losses from the drop in ProShares Long's long position.| WisdomTree International vs. 6 Meridian Mega | WisdomTree International vs. iShares MSCI Poland | WisdomTree International vs. Xtrackers MSCI Japan | WisdomTree International vs. American Century Quality |
| ProShares Long vs. Xtrackers Cybersecurity Select | ProShares Long vs. Starboard Investment Trust | ProShares Long vs. AIM ETF Products | ProShares Long vs. ProShares MSCI Europe |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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