Correlation Between ProShares UltraPro and WisdomTree New
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and WisdomTree New 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 New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro Russell2000 and WisdomTree New Economy, you can compare the effects of market volatilities on ProShares UltraPro and WisdomTree New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and WisdomTree New.
Diversification Opportunities for ProShares UltraPro and WisdomTree New
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro Russell2000 and WisdomTree New Economy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree New Economy 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 Russell2000 are associated (or correlated) with WisdomTree New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree New Economy has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and WisdomTree New go up and down completely randomly.
Pair Corralation between ProShares UltraPro and WisdomTree New
Given the investment horizon of 90 days ProShares UltraPro Russell2000 is expected to generate 2.58 times more return on investment than WisdomTree New. However, ProShares UltraPro is 2.58 times more volatile than WisdomTree New Economy. It trades about 0.16 of its potential returns per unit of risk. WisdomTree New Economy is currently generating about 0.13 per unit of risk. If you would invest 4,843 in ProShares UltraPro Russell2000 on November 14, 2025 and sell it today you would earn a total of 1,632 from holding ProShares UltraPro Russell2000 or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro Russell2000 vs. WisdomTree New Economy
Performance |
| Timeline |
| ProShares UltraPro |
| WisdomTree New Economy |
ProShares UltraPro and WisdomTree New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and WisdomTree New
The main advantage of trading using opposite ProShares UltraPro and WisdomTree New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, WisdomTree New 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 New will offset losses from the drop in WisdomTree New's long position.| ProShares UltraPro vs. Direxion Daily CSI | ProShares UltraPro vs. FlexShares Global Quality | ProShares UltraPro vs. Invesco Exchange Traded | ProShares UltraPro vs. Goldman Sachs ETF |
| WisdomTree New vs. Invesco Exchange Traded | WisdomTree New vs. VanEck ETF Trust | WisdomTree New vs. ProShares UltraPro Russell2000 | WisdomTree New vs. JPMorgan Diversified Return |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |