Correlation Between ProShares Ultra and WisdomTree Efficient
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and WisdomTree Efficient 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 Ultra and WisdomTree Efficient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Euro and WisdomTree Efficient Gold, you can compare the effects of market volatilities on ProShares Ultra and WisdomTree Efficient 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 Ultra with a short position of WisdomTree Efficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and WisdomTree Efficient.
Diversification Opportunities for ProShares Ultra and WisdomTree Efficient
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and WisdomTree Efficient Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Efficient Gold and ProShares Ultra 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 Ultra Euro are associated (or correlated) with WisdomTree Efficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Efficient Gold has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and WisdomTree Efficient go up and down completely randomly.
Pair Corralation between ProShares Ultra and WisdomTree Efficient
Considering the 90-day investment horizon ProShares Ultra is expected to generate 18.42 times less return on investment than WisdomTree Efficient. But when comparing it to its historical volatility, ProShares Ultra Euro is 5.83 times less risky than WisdomTree Efficient. It trades about 0.05 of its potential returns per unit of risk. WisdomTree Efficient Gold is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,695 in WisdomTree Efficient Gold on November 26, 2025 and sell it today you would earn a total of 4,510 from holding WisdomTree Efficient Gold or generate 51.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Euro vs. WisdomTree Efficient Gold
Performance |
| Timeline |
| ProShares Ultra Euro |
| WisdomTree Efficient Gold |
ProShares Ultra and WisdomTree Efficient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and WisdomTree Efficient
The main advantage of trading using opposite ProShares Ultra and WisdomTree Efficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, WisdomTree Efficient 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 Efficient will offset losses from the drop in WisdomTree Efficient's long position.| ProShares Ultra vs. Direxion Daily NFLX | ProShares Ultra vs. Bitwise Funds Trust | ProShares Ultra vs. iShares ESG MSCI | ProShares Ultra vs. iShares Emerging Markets |
| WisdomTree Efficient vs. Exchange Listed Funds | WisdomTree Efficient vs. WisdomTree Global High | WisdomTree Efficient vs. iShares Genomics Immunology | WisdomTree Efficient vs. 2023 EFT Series |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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