Correlation Between WisdomTree Europe and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe 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 Europe 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 Europe SmallCap and ProShares Ultra MSCI, you can compare the effects of market volatilities on WisdomTree Europe 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 Europe with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and ProShares Ultra.
Diversification Opportunities for WisdomTree Europe and ProShares Ultra
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and ProShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and ProShares Ultra MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra MSCI and WisdomTree Europe 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 Europe SmallCap 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 MSCI has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree Europe and ProShares Ultra
Considering the 90-day investment horizon WisdomTree Europe is expected to generate 2.01 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, WisdomTree Europe SmallCap is 1.95 times less risky than ProShares Ultra. It trades about 0.26 of its potential returns per unit of risk. ProShares Ultra MSCI is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 6,076 in ProShares Ultra MSCI on November 28, 2025 and sell it today you would earn a total of 1,544 from holding ProShares Ultra MSCI or generate 25.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. ProShares Ultra MSCI
Performance |
| Timeline |
| WisdomTree Europe |
| ProShares Ultra MSCI |
WisdomTree Europe and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and ProShares Ultra
The main advantage of trading using opposite WisdomTree Europe and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe 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 Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares MSCI Japan |
| ProShares Ultra vs. Direxion Daily Regional | ProShares Ultra vs. MicroSectors Gold Miners | ProShares Ultra vs. T Rowe Price | ProShares Ultra vs. Innovator Laddered Allocation |
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 Stocks Directory module to find actively traded stocks across global markets.
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