Correlation Between WisdomTree International and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and ProShares UltraPro 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 International and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Equity and ProShares UltraPro Dow30, you can compare the effects of market volatilities on WisdomTree International and ProShares UltraPro 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 International with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and ProShares UltraPro.
Diversification Opportunities for WisdomTree International and ProShares UltraPro
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and ProShares UltraPro Dow30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Dow30 and WisdomTree International 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 International Equity are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Dow30 has no effect on the direction of WisdomTree International i.e., WisdomTree International and ProShares UltraPro go up and down completely randomly.
Pair Corralation between WisdomTree International and ProShares UltraPro
Considering the 90-day investment horizon WisdomTree International is expected to generate 2.21 times less return on investment than ProShares UltraPro. But when comparing it to its historical volatility, WisdomTree International Equity is 3.35 times less risky than ProShares UltraPro. It trades about 0.09 of its potential returns per unit of risk. ProShares UltraPro Dow30 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,432 in ProShares UltraPro Dow30 on October 4, 2025 and sell it today you would earn a total of 359.00 from holding ProShares UltraPro Dow30 or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Equit vs. ProShares UltraPro Dow30
Performance |
| Timeline |
| WisdomTree International |
| ProShares UltraPro Dow30 |
WisdomTree International and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and ProShares UltraPro
The main advantage of trading using opposite WisdomTree International and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.The idea behind WisdomTree International Equity and ProShares UltraPro Dow30 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.
| ProShares UltraPro vs. ProShares Ultra Dow30 | ProShares UltraPro vs. Rockefeller Global Equity | ProShares UltraPro vs. WisdomTree International Quality | ProShares UltraPro vs. Rockefeller Small Mid Cap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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