Correlation Between WisdomTree Managed and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed 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 Managed 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 Managed Futures and ProShares Trust, you can compare the effects of market volatilities on WisdomTree Managed 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 Managed with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and ProShares Trust.
Diversification Opportunities for WisdomTree Managed and ProShares Trust
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and ProShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and WisdomTree Managed 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 Managed Futures 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 Managed i.e., WisdomTree Managed and ProShares Trust go up and down completely randomly.
Pair Corralation between WisdomTree Managed and ProShares Trust
Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 0.07 times more return on investment than ProShares Trust. However, WisdomTree Managed Futures is 13.74 times less risky than ProShares Trust. It trades about 0.09 of its potential returns per unit of risk. ProShares Trust is currently generating about -0.12 per unit of risk. If you would invest 3,724 in WisdomTree Managed Futures on November 4, 2025 and sell it today you would earn a total of 138.00 from holding WisdomTree Managed Futures or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. ProShares Trust
Performance |
| Timeline |
| WisdomTree Managed |
| ProShares Trust |
WisdomTree Managed and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and ProShares Trust
The main advantage of trading using opposite WisdomTree Managed and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed 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 Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
| ProShares Trust vs. Pinnacle Focused Opportunities | ProShares Trust vs. Fidelity Metaverse ETF | ProShares Trust vs. YieldMax MSTR Short | ProShares Trust vs. Global X HealthTech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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