Correlation Between Dimensional International and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Dimensional International 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 Dimensional International and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional International High and ProShares Ultra Dow30, you can compare the effects of market volatilities on Dimensional International 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 Dimensional International with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional International and ProShares Ultra.
Diversification Opportunities for Dimensional International and ProShares Ultra
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dimensional and ProShares is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High and ProShares Ultra Dow30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Dow30 and Dimensional International 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 Dimensional International High 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 Dow30 has no effect on the direction of Dimensional International i.e., Dimensional International and ProShares Ultra go up and down completely randomly.
Pair Corralation between Dimensional International and ProShares Ultra
Given the investment horizon of 90 days Dimensional International is expected to generate 2.81 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, Dimensional International High is 2.04 times less risky than ProShares Ultra. It trades about 0.05 of its potential returns per unit of risk. ProShares Ultra Dow30 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,203 in ProShares Ultra Dow30 on August 28, 2025 and sell it today you would earn a total of 288.00 from holding ProShares Ultra Dow30 or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional International High vs. ProShares Ultra Dow30
Performance |
| Timeline |
| Dimensional International |
| ProShares Ultra Dow30 |
Dimensional International and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional International and ProShares Ultra
The main advantage of trading using opposite Dimensional International and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional International 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.| Dimensional International vs. FT Vest Equity | Dimensional International vs. Northern Lights | Dimensional International vs. Diamond Hill Funds | Dimensional International vs. JPMorgan Fundamental Data |
| ProShares Ultra vs. FT Vest Equity | ProShares Ultra vs. Northern Lights | ProShares Ultra vs. Diamond Hill Funds | ProShares Ultra vs. Dimensional International High |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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