Correlation Between WisdomTree Efficient and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree Efficient 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 Efficient 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 Efficient Gold and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on WisdomTree Efficient 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 Efficient with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Efficient and ProShares Ultra.
Diversification Opportunities for WisdomTree Efficient and ProShares Ultra
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and ProShares is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Efficient Gold and ProShares Ultra Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloomberg and WisdomTree Efficient 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 Efficient Gold 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 Bloomberg has no effect on the direction of WisdomTree Efficient i.e., WisdomTree Efficient and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree Efficient and ProShares Ultra
Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 0.41 times more return on investment than ProShares Ultra. However, WisdomTree Efficient Gold is 2.43 times less risky than ProShares Ultra. It trades about 0.17 of its potential returns per unit of risk. ProShares Ultra Bloomberg is currently generating about -0.05 per unit of risk. If you would invest 8,897 in WisdomTree Efficient Gold on November 27, 2025 and sell it today you would earn a total of 4,308 from holding WisdomTree Efficient Gold or generate 48.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
WisdomTree Efficient Gold vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| WisdomTree Efficient Gold |
| ProShares Ultra Bloomberg |
WisdomTree Efficient and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Efficient and ProShares Ultra
The main advantage of trading using opposite WisdomTree Efficient and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Efficient 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 Efficient vs. VanEck India Growth | WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology |
| ProShares Ultra vs. iShares North American | ProShares Ultra vs. Xtrackers MSCI USA | ProShares Ultra vs. Morgan Stanley ETF | ProShares Ultra vs. First Trust Nasdaq |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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