Correlation Between ProShares UltraPro and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and WisdomTree International 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 ProShares UltraPro and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro Dow30 and WisdomTree International Equity, you can compare the effects of market volatilities on ProShares UltraPro and WisdomTree International 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 ProShares UltraPro with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and WisdomTree International.
Diversification Opportunities for ProShares UltraPro and WisdomTree International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro Dow30 and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and ProShares UltraPro 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 ProShares UltraPro Dow30 are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and WisdomTree International go up and down completely randomly.
Pair Corralation between ProShares UltraPro and WisdomTree International
Given the investment horizon of 90 days ProShares UltraPro Dow30 is expected to generate 2.97 times more return on investment than WisdomTree International. However, ProShares UltraPro is 2.97 times more volatile than WisdomTree International Equity. It trades about 0.09 of its potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.12 per unit of risk. If you would invest 4,783 in ProShares UltraPro Dow30 on October 3, 2025 and sell it today you would earn a total of 1,008 from holding ProShares UltraPro Dow30 or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro Dow30 vs. WisdomTree International Equit
Performance |
| Timeline |
| ProShares UltraPro Dow30 |
| WisdomTree International |
ProShares UltraPro and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and WisdomTree International
The main advantage of trading using opposite ProShares UltraPro and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, WisdomTree International 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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