Correlation Between ProShares Metaverse and WisdomTree MidCap

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

Diversification Opportunities for ProShares Metaverse and WisdomTree MidCap

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between ProShares and WisdomTree is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Metaverse ETF and WisdomTree MidCap Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree MidCap Quality and ProShares Metaverse 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 Metaverse ETF are associated (or correlated) with WisdomTree MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree MidCap Quality has no effect on the direction of ProShares Metaverse i.e., ProShares Metaverse and WisdomTree MidCap go up and down completely randomly.

Pair Corralation between ProShares Metaverse and WisdomTree MidCap

Given the investment horizon of 90 days ProShares Metaverse ETF is expected to under-perform the WisdomTree MidCap. In addition to that, ProShares Metaverse is 2.02 times more volatile than WisdomTree MidCap Quality. It trades about -0.09 of its total potential returns per unit of risk. WisdomTree MidCap Quality is currently generating about 0.01 per unit of volatility. If you would invest  2,872  in WisdomTree MidCap Quality on December 5, 2025 and sell it today you would earn a total of  7.44  from holding WisdomTree MidCap Quality or generate 0.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ProShares Metaverse ETF  vs.  WisdomTree MidCap Quality

 Performance 
       Timeline  
ProShares Metaverse ETF 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ProShares Metaverse ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.
WisdomTree MidCap Quality 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree MidCap Quality has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, WisdomTree MidCap is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

ProShares Metaverse and WisdomTree MidCap Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares Metaverse and WisdomTree MidCap

The main advantage of trading using opposite ProShares Metaverse and WisdomTree MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Metaverse position performs unexpectedly, WisdomTree MidCap 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 MidCap will offset losses from the drop in WisdomTree MidCap's long position.
The idea behind ProShares Metaverse ETF and WisdomTree MidCap Quality 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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