Correlation Between ProShares Ultra and WisdomTree International

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Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and WisdomTree International 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 International 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 International Multifactor, you can compare the effects of market volatilities on ProShares Ultra and WisdomTree International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and WisdomTree International.

Diversification Opportunities for ProShares Ultra and WisdomTree International

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between ProShares and WisdomTree is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and WisdomTree International go up and down completely randomly.

Pair Corralation between ProShares Ultra and WisdomTree International

Considering the 90-day investment horizon ProShares Ultra is expected to generate 4.39 times less return on investment than WisdomTree International. In addition to that, ProShares Ultra is 1.84 times more volatile than WisdomTree International Multifactor. It trades about 0.03 of its total potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.26 per unit of volatility. If you would invest  3,192  in WisdomTree International Multifactor on November 15, 2025 and sell it today you would earn a total of  318.00  from holding WisdomTree International Multifactor or generate 9.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ProShares Ultra Yen  vs.  WisdomTree International Multi

 Performance 
       Timeline  
ProShares Ultra Yen 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Yen are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, ProShares Ultra is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.
WisdomTree International 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree International Multifactor are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain primary indicators, WisdomTree International may actually be approaching a critical reversion point that can send shares even higher in March 2026.

ProShares Ultra and WisdomTree International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares Ultra and WisdomTree International

The main advantage of trading using opposite ProShares Ultra and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, WisdomTree International 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 International will offset losses from the drop in WisdomTree International's long position.
The idea behind ProShares Ultra Yen and WisdomTree International Multifactor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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