Correlation Between WisdomTree BioRevolution and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both WisdomTree BioRevolution and ProShares Trust 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 BioRevolution and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree BioRevolution and ProShares Trust, you can compare the effects of market volatilities on WisdomTree BioRevolution and ProShares Trust 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 BioRevolution with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree BioRevolution and ProShares Trust.
Diversification Opportunities for WisdomTree BioRevolution and ProShares Trust
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and ProShares is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree BioRevolution and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and WisdomTree BioRevolution 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 BioRevolution are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of WisdomTree BioRevolution i.e., WisdomTree BioRevolution and ProShares Trust go up and down completely randomly.
Pair Corralation between WisdomTree BioRevolution and ProShares Trust
Given the investment horizon of 90 days WisdomTree BioRevolution is expected to generate 0.15 times more return on investment than ProShares Trust. However, WisdomTree BioRevolution is 6.74 times less risky than ProShares Trust. It trades about 0.11 of its potential returns per unit of risk. ProShares Trust is currently generating about -0.14 per unit of risk. If you would invest 1,647 in WisdomTree BioRevolution on November 25, 2025 and sell it today you would earn a total of 150.74 from holding WisdomTree BioRevolution or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree BioRevolution vs. ProShares Trust
Performance |
| Timeline |
| WisdomTree BioRevolution |
| ProShares Trust |
WisdomTree BioRevolution and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree BioRevolution and ProShares Trust
The main advantage of trading using opposite WisdomTree BioRevolution and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree BioRevolution position performs unexpectedly, ProShares Trust 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 Trust will offset losses from the drop in ProShares Trust's long position.| WisdomTree BioRevolution vs. Global X SP | WisdomTree BioRevolution vs. Themes Cash Flow | WisdomTree BioRevolution vs. ETF Managers Group | WisdomTree BioRevolution vs. VanEck ETF Trust |
| ProShares Trust vs. Fidelity Blue Chip | ProShares Trust vs. T REX 2X Long | ProShares Trust vs. Global X Data | ProShares Trust vs. Bushido Capital Equity |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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