Correlation Between WisdomTree Dynamic and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree Dynamic and ProShares Ultra 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 Dynamic and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Dynamic Currency and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on WisdomTree Dynamic and ProShares Ultra 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 Dynamic with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Dynamic and ProShares Ultra.
Diversification Opportunities for WisdomTree Dynamic and ProShares Ultra
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and ProShares is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Dynamic Currency and ProShares Ultra Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloomberg and WisdomTree Dynamic 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 Dynamic Currency are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Bloomberg has no effect on the direction of WisdomTree Dynamic i.e., WisdomTree Dynamic and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree Dynamic and ProShares Ultra
Given the investment horizon of 90 days WisdomTree Dynamic is expected to generate 5.58 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, WisdomTree Dynamic Currency is 15.18 times less risky than ProShares Ultra. It trades about 0.23 of its potential returns per unit of risk. ProShares Ultra Bloomberg is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,205 in ProShares Ultra Bloomberg on November 3, 2025 and sell it today you would earn a total of 862.00 from holding ProShares Ultra Bloomberg or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Dynamic Currency vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| WisdomTree Dynamic |
| ProShares Ultra Bloomberg |
WisdomTree Dynamic and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Dynamic and ProShares Ultra
The main advantage of trading using opposite WisdomTree Dynamic and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Dynamic position performs unexpectedly, ProShares Ultra 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 Ultra will offset losses from the drop in ProShares Ultra's long position.| WisdomTree Dynamic vs. iShares MSCI Poland | WisdomTree Dynamic vs. iShares MSCI Emerging | WisdomTree Dynamic vs. Xtrackers MSCI Japan | WisdomTree Dynamic vs. iShares MSCI Japan |
| ProShares Ultra vs. iShares North American | ProShares Ultra vs. Xtrackers MSCI USA | ProShares Ultra vs. Morgan Stanley ETF | ProShares Ultra vs. First Trust Nasdaq |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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