Correlation Between ProShares VIX and WisdomTree Dynamic
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and WisdomTree Dynamic 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 VIX and WisdomTree Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares VIX Mid Term and WisdomTree Dynamic Currency, you can compare the effects of market volatilities on ProShares VIX and WisdomTree Dynamic 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 VIX with a short position of WisdomTree Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and WisdomTree Dynamic.
Diversification Opportunities for ProShares VIX and WisdomTree Dynamic
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and WisdomTree is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Mid Term and WisdomTree Dynamic Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Dynamic and ProShares VIX 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 VIX Mid Term are associated (or correlated) with WisdomTree Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Dynamic has no effect on the direction of ProShares VIX i.e., ProShares VIX and WisdomTree Dynamic go up and down completely randomly.
Pair Corralation between ProShares VIX and WisdomTree Dynamic
Given the investment horizon of 90 days ProShares VIX is expected to generate 3.05 times less return on investment than WisdomTree Dynamic. In addition to that, ProShares VIX is 2.13 times more volatile than WisdomTree Dynamic Currency. It trades about 0.02 of its total potential returns per unit of risk. WisdomTree Dynamic Currency is currently generating about 0.11 per unit of volatility. If you would invest 3,374 in WisdomTree Dynamic Currency on September 29, 2025 and sell it today you would earn a total of 906.00 from holding WisdomTree Dynamic Currency or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares VIX Mid Term vs. WisdomTree Dynamic Currency
Performance |
| Timeline |
| ProShares VIX Mid |
| WisdomTree Dynamic |
ProShares VIX and WisdomTree Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and WisdomTree Dynamic
The main advantage of trading using opposite ProShares VIX and WisdomTree Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, WisdomTree Dynamic 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 Dynamic will offset losses from the drop in WisdomTree Dynamic's long position.| ProShares VIX vs. ProShares Ultra Yen | ProShares VIX vs. AdvisorShares Pure Cannabis | ProShares VIX vs. Leverage Shares 2X | ProShares VIX vs. Listed Funds Trust |
| WisdomTree Dynamic vs. iShares MSCI Poland | WisdomTree Dynamic vs. iShares MSCI Emerging | WisdomTree Dynamic vs. Xtrackers MSCI Japan | WisdomTree Dynamic vs. iShares MSCI Japan |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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