Correlation Between ProShares Ultra and WisdomTree Dynamic
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and WisdomTree Dynamic 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 Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Yen and WisdomTree Dynamic Currency, you can compare the effects of market volatilities on ProShares Ultra and WisdomTree Dynamic 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 Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and WisdomTree Dynamic.
Diversification Opportunities for ProShares Ultra and WisdomTree Dynamic
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and WisdomTree is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and WisdomTree Dynamic Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Dynamic 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 Yen are associated (or correlated) with WisdomTree Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Dynamic has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and WisdomTree Dynamic go up and down completely randomly.
Pair Corralation between ProShares Ultra and WisdomTree Dynamic
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the WisdomTree Dynamic. In addition to that, ProShares Ultra is 1.55 times more volatile than WisdomTree Dynamic Currency. It trades about -0.08 of its total potential returns per unit of risk. WisdomTree Dynamic Currency is currently generating about 0.17 per unit of volatility. If you would invest 4,226 in WisdomTree Dynamic Currency on November 8, 2025 and sell it today you would earn a total of 292.00 from holding WisdomTree Dynamic Currency or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. WisdomTree Dynamic Currency
Performance |
| Timeline |
| ProShares Ultra Yen |
| WisdomTree Dynamic |
ProShares Ultra and WisdomTree Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and WisdomTree Dynamic
The main advantage of trading using opposite ProShares Ultra and WisdomTree Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, WisdomTree Dynamic 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 Dynamic will offset losses from the drop in WisdomTree Dynamic's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. AIM ETF Products | ProShares Ultra vs. iShares International Developed | ProShares Ultra vs. Neuberger Berman ETF |
| WisdomTree Dynamic vs. WisdomTree MidCap Earnings | WisdomTree Dynamic vs. iShares Morningstar Mid Cap | WisdomTree Dynamic vs. Vanguard Russell 2000 | WisdomTree Dynamic vs. iShares MSCI Global |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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