Correlation Between ProShares VIX and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both ProShares VIX and WisdomTree International 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 International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares VIX Short Term and WisdomTree International Equity, you can compare the effects of market volatilities on ProShares VIX and WisdomTree International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares VIX and WisdomTree International.
Diversification Opportunities for ProShares VIX and WisdomTree International
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and WisdomTree is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares VIX Short Term and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 Short Term are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of ProShares VIX i.e., ProShares VIX and WisdomTree International go up and down completely randomly.
Pair Corralation between ProShares VIX and WisdomTree International
Given the investment horizon of 90 days ProShares VIX Short Term is expected to under-perform the WisdomTree International. In addition to that, ProShares VIX is 4.55 times more volatile than WisdomTree International Equity. It trades about -0.07 of its total potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.22 per unit of volatility. If you would invest 6,658 in WisdomTree International Equity on November 10, 2025 and sell it today you would earn a total of 683.00 from holding WisdomTree International Equity or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares VIX Short Term vs. WisdomTree International Equit
Performance |
| Timeline |
| ProShares VIX Short |
| WisdomTree International |
ProShares VIX and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares VIX and WisdomTree International
The main advantage of trading using opposite ProShares VIX and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares VIX position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.| ProShares VIX vs. ProShares Short VIX | ProShares VIX vs. ProShares Ultra VIX | ProShares VIX vs. VanEck Short Muni | ProShares VIX vs. SPDR DoubleLine Short |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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