Correlation Between ProShares Ultra and WisdomTree Managed
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and WisdomTree Managed 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 Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Silver and WisdomTree Managed Futures, you can compare the effects of market volatilities on ProShares Ultra and WisdomTree Managed 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 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and WisdomTree Managed.
Diversification Opportunities for ProShares Ultra and WisdomTree Managed
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Silver and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed 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 Silver are associated (or correlated) with WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and WisdomTree Managed go up and down completely randomly.
Pair Corralation between ProShares Ultra and WisdomTree Managed
Considering the 90-day investment horizon ProShares Ultra Silver is expected to generate 12.42 times more return on investment than WisdomTree Managed. However, ProShares Ultra is 12.42 times more volatile than WisdomTree Managed Futures. It trades about 0.25 of its potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.11 per unit of risk. If you would invest 8,210 in ProShares Ultra Silver on October 8, 2025 and sell it today you would earn a total of 12,240 from holding ProShares Ultra Silver or generate 149.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
ProShares Ultra Silver vs. WisdomTree Managed Futures
Performance |
| Timeline |
| ProShares Ultra Silver |
| WisdomTree Managed |
ProShares Ultra and WisdomTree Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and WisdomTree Managed
The main advantage of trading using opposite ProShares Ultra and WisdomTree Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, WisdomTree Managed 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 Managed will offset losses from the drop in WisdomTree Managed's long position.| ProShares Ultra vs. ProShares Ultra Gold | ProShares Ultra vs. Alpscorecommodity Management Pletecommoditiessm | ProShares Ultra vs. PIMCO Enhanced Low | ProShares Ultra vs. iShares Cybersecurity and |
| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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