Correlation Between ProShares Ultra and WisdomTree MidCap
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and WisdomTree MidCap 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 MidCap 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 MidCap Dividend, you can compare the effects of market volatilities on ProShares Ultra and WisdomTree MidCap 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 MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and WisdomTree MidCap.
Diversification Opportunities for ProShares Ultra and WisdomTree MidCap
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and WisdomTree is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and WisdomTree MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree MidCap 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 MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree MidCap has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and WisdomTree MidCap go up and down completely randomly.
Pair Corralation between ProShares Ultra and WisdomTree MidCap
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the WisdomTree MidCap. In addition to that, ProShares Ultra is 1.37 times more volatile than WisdomTree MidCap Dividend. It trades about 0.0 of its total potential returns per unit of risk. WisdomTree MidCap Dividend is currently generating about 0.14 per unit of volatility. If you would invest 5,040 in WisdomTree MidCap Dividend on October 29, 2025 and sell it today you would earn a total of 337.00 from holding WisdomTree MidCap Dividend or generate 6.69% 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 MidCap Dividend
Performance |
| Timeline |
| ProShares Ultra Yen |
| WisdomTree MidCap |
ProShares Ultra and WisdomTree MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and WisdomTree MidCap
The main advantage of trading using opposite ProShares Ultra and WisdomTree MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, WisdomTree MidCap 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 MidCap will offset losses from the drop in WisdomTree MidCap'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 MidCap vs. WisdomTree Emerging Markets | WisdomTree MidCap vs. WisdomTree Japan Hedged | WisdomTree MidCap vs. iShares Financials ETF | WisdomTree MidCap vs. iShares Exponential Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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