Correlation Between WisdomTree Japan and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan 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 Japan 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 Japan Hedged and ProShares Ultra Russell2000, you can compare the effects of market volatilities on WisdomTree Japan 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 Japan with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and ProShares Ultra.
Diversification Opportunities for WisdomTree Japan and ProShares Ultra
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged and ProShares Ultra Russell2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Russ and WisdomTree Japan 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 Japan Hedged 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 Russ has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree Japan and ProShares Ultra
Considering the 90-day investment horizon WisdomTree Japan Hedged is expected to generate 0.49 times more return on investment than ProShares Ultra. However, WisdomTree Japan Hedged is 2.05 times less risky than ProShares Ultra. It trades about 0.32 of its potential returns per unit of risk. ProShares Ultra Russell2000 is currently generating about 0.1 per unit of risk. If you would invest 14,000 in WisdomTree Japan Hedged on November 28, 2025 and sell it today you would earn a total of 3,014 from holding WisdomTree Japan Hedged or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. ProShares Ultra Russell2000
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| ProShares Ultra Russ |
WisdomTree Japan and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and ProShares Ultra
The main advantage of trading using opposite WisdomTree Japan and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan 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 Japan vs. Managed Portfolio Series | WisdomTree Japan vs. ProShares Ultra Utilities | WisdomTree Japan vs. Series Portfolios Trust | WisdomTree Japan vs. JP Morgan Exchange Traded |
| ProShares Ultra vs. Oppenheimer Russell 2000 | ProShares Ultra vs. NEOS Russell 2000 | ProShares Ultra vs. Innovator Russell 2000 | ProShares Ultra vs. Invesco SP SmallCap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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