Correlation Between ProShares Trust and Fidelity Wise

Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Fidelity Wise 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 ProShares Trust and Fidelity Wise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Trust and Fidelity Wise Origin, you can compare the effects of market volatilities on ProShares Trust and Fidelity Wise 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 ProShares Trust with a short position of Fidelity Wise. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Fidelity Wise.

Diversification Opportunities for ProShares Trust and Fidelity Wise

0.0

Correlation Coefficient

ProShares Trust  Fidelity Wise

Pay attention - limited upside

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

Pair Corralation between ProShares Trust and Fidelity Wise

If you would invest (100.00) in Fidelity Wise Origin on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Fidelity Wise Origin or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ProShares Trust  vs.  Fidelity Wise Origin

ProShares Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Trust 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 technical indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Fidelity Wise Origin

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Wise Origin are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Fidelity Wise exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares Trust and Fidelity Wise

The main advantage of trading using opposite ProShares Trust and Fidelity Wise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Fidelity Wise 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 Fidelity Wise will offset losses from the drop in Fidelity Wise's long position.

The idea behind ProShares Trust and Fidelity Wise Origin 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.