Correlation Between WisdomTree Managed and ProShares Smart
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and ProShares Smart 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 Smart 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 Smart Materials, you can compare the effects of market volatilities on WisdomTree Managed and ProShares Smart 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 Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and ProShares Smart.
Diversification Opportunities for WisdomTree Managed and ProShares Smart
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and ProShares Smart Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Smart Materials 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 Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Smart Materials has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and ProShares Smart go up and down completely randomly.
Pair Corralation between WisdomTree Managed and ProShares Smart
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 5.8 times less return on investment than ProShares Smart. But when comparing it to its historical volatility, WisdomTree Managed Futures is 1.64 times less risky than ProShares Smart. It trades about 0.04 of its potential returns per unit of risk. ProShares Smart Materials is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,269 in ProShares Smart Materials on November 4, 2025 and sell it today you would earn a total of 314.50 from holding ProShares Smart Materials or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. ProShares Smart Materials
Performance |
| Timeline |
| WisdomTree Managed |
| ProShares Smart Materials |
WisdomTree Managed and ProShares Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and ProShares Smart
The main advantage of trading using opposite WisdomTree Managed and ProShares Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, ProShares Smart 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 Smart will offset losses from the drop in ProShares Smart'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 Smart vs. USCF Sustainable Battery | ProShares Smart vs. Themes Natural Monopoly | ProShares Smart vs. ProShares SP Kensho | ProShares Smart vs. Horizon Nasdaq 100 Defined |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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