Correlation Between WisdomTree Efficient and ProShares Merger

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

Diversification Opportunities for WisdomTree Efficient and ProShares Merger

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between WisdomTree and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Long and ProShares Merger ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Merger ETF and WisdomTree Efficient 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 Efficient Long are associated (or correlated) with ProShares Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Merger ETF has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and ProShares Merger go up and down completely randomly.

Pair Corralation between WisdomTree Efficient and ProShares Merger

If you would invest  4,372  in ProShares Merger ETF on November 1, 2025 and sell it today you would earn a total of  135.00  from holding ProShares Merger ETF or generate 3.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

WisdomTree Efficient Long  vs.  ProShares Merger ETF

 Performance 
       Timeline  
WisdomTree Efficient Long 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree Efficient Long has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, WisdomTree Efficient is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
ProShares Merger ETF 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Merger ETF are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, ProShares Merger is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

WisdomTree Efficient and ProShares Merger Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Efficient and ProShares Merger

The main advantage of trading using opposite WisdomTree Efficient and ProShares Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient position performs unexpectedly, ProShares Merger 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 Merger will offset losses from the drop in ProShares Merger's long position.
The idea behind WisdomTree Efficient Long and ProShares Merger ETF 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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