Correlation Between ProShares UltraPro and WisdomTree BioRevolution
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and WisdomTree BioRevolution 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 BioRevolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro SP500 and WisdomTree BioRevolution, you can compare the effects of market volatilities on ProShares UltraPro and WisdomTree BioRevolution 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 BioRevolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and WisdomTree BioRevolution.
Diversification Opportunities for ProShares UltraPro and WisdomTree BioRevolution
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and WisdomTree BioRevolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree BioRevolution 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 SP500 are associated (or correlated) with WisdomTree BioRevolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree BioRevolution has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and WisdomTree BioRevolution go up and down completely randomly.
Pair Corralation between ProShares UltraPro and WisdomTree BioRevolution
Given the investment horizon of 90 days ProShares UltraPro is expected to generate 2.57 times less return on investment than WisdomTree BioRevolution. In addition to that, ProShares UltraPro is 1.47 times more volatile than WisdomTree BioRevolution. It trades about 0.04 of its total potential returns per unit of risk. WisdomTree BioRevolution is currently generating about 0.16 per unit of volatility. If you would invest 1,620 in WisdomTree BioRevolution on October 30, 2025 and sell it today you would earn a total of 236.00 from holding WisdomTree BioRevolution or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. WisdomTree BioRevolution
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| WisdomTree BioRevolution |
ProShares UltraPro and WisdomTree BioRevolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and WisdomTree BioRevolution
The main advantage of trading using opposite ProShares UltraPro and WisdomTree BioRevolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, WisdomTree BioRevolution 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 BioRevolution will offset losses from the drop in WisdomTree BioRevolution's long position.| ProShares UltraPro vs. Oppenheimer Russell 1000 | ProShares UltraPro vs. Vanguard Russell 3000 | ProShares UltraPro vs. iShares MSCI KLD | ProShares UltraPro vs. Global X Defense |
| WisdomTree BioRevolution vs. Global X SP | WisdomTree BioRevolution vs. Themes Cash Flow | WisdomTree BioRevolution vs. ETF Managers Group | WisdomTree BioRevolution vs. VanEck ETF Trust |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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