Correlation Between ProShares and WisdomTree Issuer
Can any of the company-specific risk be diversified away by investing in both ProShares and WisdomTree Issuer 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 and WisdomTree Issuer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP MidCap and WisdomTree Issuer ICAV, you can compare the effects of market volatilities on ProShares and WisdomTree Issuer 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 with a short position of WisdomTree Issuer. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and WisdomTree Issuer.
Diversification Opportunities for ProShares and WisdomTree Issuer
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP MidCap and WisdomTree Issuer ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Issuer ICAV and ProShares 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 SP MidCap are associated (or correlated) with WisdomTree Issuer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Issuer ICAV has no effect on the direction of ProShares i.e., ProShares and WisdomTree Issuer go up and down completely randomly.
Pair Corralation between ProShares and WisdomTree Issuer
Given the investment horizon of 90 days ProShares SP MidCap is expected to generate 1.47 times more return on investment than WisdomTree Issuer. However, ProShares is 1.47 times more volatile than WisdomTree Issuer ICAV. It trades about 0.25 of its potential returns per unit of risk. WisdomTree Issuer ICAV is currently generating about 0.21 per unit of risk. If you would invest 8,364 in ProShares SP MidCap on November 25, 2025 and sell it today you would earn a total of 932.00 from holding ProShares SP MidCap or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
ProShares SP MidCap vs. WisdomTree Issuer ICAV
Performance |
| Timeline |
| ProShares SP MidCap |
| WisdomTree Issuer ICAV |
ProShares and WisdomTree Issuer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and WisdomTree Issuer
The main advantage of trading using opposite ProShares and WisdomTree Issuer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, WisdomTree Issuer 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 Issuer will offset losses from the drop in WisdomTree Issuer's long position.| ProShares vs. WHITEWOLF Publicly Listed | ProShares vs. John Hancock Exchange Traded | ProShares vs. Allspring Exchange Traded Funds | ProShares vs. ProShares Equities for |
| WisdomTree Issuer vs. Vanguard Total Stock | WisdomTree Issuer vs. SPDR SP 500 | WisdomTree Issuer vs. iShares Core SP | WisdomTree Issuer vs. Vanguard Total Bond |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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