Correlation Between WisdomTree Continuous and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both WisdomTree Continuous and ProShares UltraShort 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 Continuous and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Continuous Commodity and ProShares UltraShort Bloomberg, you can compare the effects of market volatilities on WisdomTree Continuous and ProShares UltraShort 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 Continuous with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Continuous and ProShares UltraShort.
Diversification Opportunities for WisdomTree Continuous and ProShares UltraShort
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and ProShares is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Continuous Commodit and ProShares UltraShort Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and WisdomTree Continuous 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 Continuous Commodity are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of WisdomTree Continuous i.e., WisdomTree Continuous and ProShares UltraShort go up and down completely randomly.
Pair Corralation between WisdomTree Continuous and ProShares UltraShort
Considering the 90-day investment horizon WisdomTree Continuous Commodity is expected to generate 0.42 times more return on investment than ProShares UltraShort. However, WisdomTree Continuous Commodity is 2.37 times less risky than ProShares UltraShort. It trades about 0.34 of its potential returns per unit of risk. ProShares UltraShort Bloomberg is currently generating about 0.03 per unit of risk. If you would invest 2,060 in WisdomTree Continuous Commodity on October 9, 2025 and sell it today you would earn a total of 150.00 from holding WisdomTree Continuous Commodity or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Continuous Commodit vs. ProShares UltraShort Bloomberg
Performance |
| Timeline |
| WisdomTree Continuous |
| ProShares UltraShort |
WisdomTree Continuous and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Continuous and ProShares UltraShort
The main advantage of trading using opposite WisdomTree Continuous and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Continuous position performs unexpectedly, ProShares UltraShort 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 UltraShort will offset losses from the drop in ProShares UltraShort's long position.| WisdomTree Continuous vs. VanEck Natural Resources | WisdomTree Continuous vs. Direxion Auspice Broad | WisdomTree Continuous vs. Ballast SmallMid Cap | WisdomTree Continuous vs. AIM ETF Products |
| ProShares UltraShort vs. ProShares UltraShort Bloomberg | ProShares UltraShort vs. Invesco DB Dollar | ProShares UltraShort vs. Direxion Daily CSI | ProShares UltraShort vs. 1x Short VIX |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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