Correlation Between WisdomTree International and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree International 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 International 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 International Equity and ProShares Ultra High, you can compare the effects of market volatilities on WisdomTree International 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 International with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and ProShares Ultra.
Diversification Opportunities for WisdomTree International and ProShares Ultra
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and ProShares Ultra High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra High 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 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 High has no effect on the direction of WisdomTree International i.e., WisdomTree International and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree International and ProShares Ultra
Considering the 90-day investment horizon WisdomTree International Equity is expected to generate 2.64 times more return on investment than ProShares Ultra. However, WisdomTree International is 2.64 times more volatile than ProShares Ultra High. It trades about 0.32 of its potential returns per unit of risk. ProShares Ultra High is currently generating about 0.09 per unit of risk. If you would invest 6,669 in WisdomTree International Equity on December 1, 2025 and sell it today you would earn a total of 910.00 from holding WisdomTree International Equity or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Equit vs. ProShares Ultra High
Performance |
| Timeline |
| WisdomTree International |
| ProShares Ultra High |
WisdomTree International and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and ProShares Ultra
The main advantage of trading using opposite WisdomTree International and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International 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.The idea behind WisdomTree International Equity and ProShares Ultra High 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 Ultra vs. Fm Compoundr Aggregate | ProShares Ultra vs. iShares ESG Aware | ProShares Ultra vs. Direxion Shares ETF | ProShares Ultra vs. Nuveen Sustainable Core |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |