Correlation Between WisdomTree BioRevolution and ProShares VIX

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Can any of the company-specific risk be diversified away by investing in both WisdomTree BioRevolution and ProShares VIX 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 VIX 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 VIX Short Term, you can compare the effects of market volatilities on WisdomTree BioRevolution and ProShares VIX 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 VIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree BioRevolution and ProShares VIX.

Diversification Opportunities for WisdomTree BioRevolution and ProShares VIX

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between WisdomTree and ProShares is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree BioRevolution and ProShares VIX Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares VIX Short 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 VIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares VIX Short has no effect on the direction of WisdomTree BioRevolution i.e., WisdomTree BioRevolution and ProShares VIX go up and down completely randomly.

Pair Corralation between WisdomTree BioRevolution and ProShares VIX

Given the investment horizon of 90 days WisdomTree BioRevolution is expected to generate 0.45 times more return on investment than ProShares VIX. However, WisdomTree BioRevolution is 2.24 times less risky than ProShares VIX. It trades about 0.16 of its potential returns per unit of risk. ProShares VIX Short Term is currently generating about -0.12 per unit of risk. If you would invest  1,587  in WisdomTree BioRevolution on November 21, 2025 and sell it today you would earn a total of  223.99  from holding WisdomTree BioRevolution or generate 14.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

WisdomTree BioRevolution  vs.  ProShares VIX Short Term

 Performance 
       Timeline  
WisdomTree BioRevolution 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree BioRevolution are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, WisdomTree BioRevolution sustained solid returns over the last few months and may actually be approaching a breakup point.
ProShares VIX Short 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ProShares VIX Short Term has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in March 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.

WisdomTree BioRevolution and ProShares VIX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree BioRevolution and ProShares VIX

The main advantage of trading using opposite WisdomTree BioRevolution and ProShares VIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree BioRevolution position performs unexpectedly, ProShares VIX 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 VIX will offset losses from the drop in ProShares VIX's long position.
The idea behind WisdomTree BioRevolution and ProShares VIX Short Term 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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