Correlation Between WisdomTree BioRevolution and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both WisdomTree BioRevolution 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 BioRevolution 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 BioRevolution and ProShares Ultra Gold, you can compare the effects of market volatilities on WisdomTree BioRevolution 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 BioRevolution with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree BioRevolution and ProShares Ultra.
Diversification Opportunities for WisdomTree BioRevolution and ProShares Ultra
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and ProShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree BioRevolution and ProShares Ultra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Gold and WisdomTree BioRevolution 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 BioRevolution 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 Gold has no effect on the direction of WisdomTree BioRevolution i.e., WisdomTree BioRevolution and ProShares Ultra go up and down completely randomly.
Pair Corralation between WisdomTree BioRevolution and ProShares Ultra
Given the investment horizon of 90 days WisdomTree BioRevolution is expected to generate 3.12 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, WisdomTree BioRevolution is 3.23 times less risky than ProShares Ultra. It trades about 0.16 of its potential returns per unit of risk. ProShares Ultra Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,995 in ProShares Ultra Gold on November 21, 2025 and sell it today you would earn a total of 2,129 from holding ProShares Ultra Gold or generate 42.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree BioRevolution vs. ProShares Ultra Gold
Performance |
| Timeline |
| WisdomTree BioRevolution |
| ProShares Ultra Gold |
WisdomTree BioRevolution and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree BioRevolution and ProShares Ultra
The main advantage of trading using opposite WisdomTree BioRevolution and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree BioRevolution 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 BioRevolution vs. Global X SP | WisdomTree BioRevolution vs. Themes Cash Flow | WisdomTree BioRevolution vs. ETF Managers Group | WisdomTree BioRevolution vs. VanEck ETF Trust |
| ProShares Ultra vs. ProShares Ultra Silver | ProShares Ultra vs. iShares GSCI Commodity | ProShares Ultra vs. iShares Currency Hedged | ProShares Ultra vs. PIMCO 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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