Correlation Between IShares MSCI and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 IShares MSCI and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Israel and ProShares Ultra Dow30, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and ProShares Ultra.
Diversification Opportunities for IShares MSCI and ProShares Ultra
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and ProShares is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Israel 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 IShares MSCI 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 iShares MSCI Israel 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 IShares MSCI i.e., IShares MSCI and ProShares Ultra go up and down completely randomly.
Pair Corralation between IShares MSCI and ProShares Ultra
Considering the 90-day investment horizon iShares MSCI Israel is expected to generate 0.95 times more return on investment than ProShares Ultra. However, iShares MSCI Israel is 1.05 times less risky than ProShares Ultra. It trades about 0.18 of its potential returns per unit of risk. ProShares Ultra Dow30 is currently generating about 0.11 per unit of risk. If you would invest 9,173 in iShares MSCI Israel on August 18, 2025 and sell it today you would earn a total of 1,379 from holding iShares MSCI Israel or generate 15.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Israel vs. ProShares Ultra Dow30
Performance |
| Timeline |
| iShares MSCI Israel |
| ProShares Ultra Dow30 |
IShares MSCI and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and ProShares Ultra
The main advantage of trading using opposite IShares MSCI and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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.| IShares MSCI vs. iShares MSCI Poland | IShares MSCI vs. iShares MSCI Emerging | IShares MSCI vs. Invesco SP MidCap | IShares MSCI vs. iShares Oil Gas |
| ProShares Ultra vs. ProShares Large Cap | ProShares Ultra vs. Burney Factor Rotation | ProShares Ultra vs. ProShares UltraPro Russell2000 | ProShares Ultra vs. Invesco SP 500 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |