Correlation Between ProShares UltraShort and WisdomTree Continuous

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Does pairing ProShares UltraShort Bloomberg with WisdomTree Continuous Commodity lower idiosyncratic risk? This module highlights the diversifiable risk of combining ProShares UltraShort Bloomberg and WisdomTree Continuous Commodity and frames portfolio overlap.
Pair correlation for ProShares UltraShort Bloomberg and WisdomTree Continuous Commodity can improve allocation efficiency and manage overlap risk. You can also test a long ProShares UltraShort and short WisdomTree Continuous structure to evaluate relative-value behavior. Review volatility patterns in ProShares UltraShort and WisdomTree Continuous. Go to your portfolio center

Diversification Opportunities for ProShares UltraShort and WisdomTree Continuous

-0.42
  Correlation Coefficient
Very good diversification
The 3 months correlation between ProShares and WisdomTree is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Bloomberg and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous and ProShares UltraShort 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 UltraShort Bloomberg are associated (or correlated) with WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and WisdomTree Continuous go up and down completely randomly.

Pair Corralation between ProShares UltraShort and WisdomTree Continuous

Given the investment horizon of 90 days ProShares UltraShort Bloomberg is expected to under-perform the WisdomTree Continuous. In addition to that, ProShares UltraShort is 6.69 times more volatile than WisdomTree Continuous Commodity. It trades about -0.04 of its total potential returns per unit of risk. WisdomTree Continuous Commodity is currently generating about 0.16 per unit of volatility. If you had invested $ 2,070 in WisdomTree Continuous Commodity on December 18, 2025 and sold it today you would have earned a total of $ 346.00 from holding WisdomTree Continuous Commodity or generated 16.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

ProShares UltraShort Bloomberg  vs.  WisdomTree Continuous Commodit

 Performance 
       Timeline  
ProShares UltraShort 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
During the last 90 trading days, ProShares UltraShort Bloomberg produced negative risk-adjusted performance, which signals weak return efficiency for investors with long positions. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. In spite of weak performance in the last few months, the etf's essential indicators remain rather sound, which may send shares a bit higher in April 2026. The latest tumult may also be a sign of longer-term up-swing for the fund's shareholders. ...more
WisdomTree Continuous 
Risk-Adjusted Performance
Balanced
 
Weak
 
Strong
Over the last 90 days, WisdomTree Continuous Commodity generated negative risk-adjusted returns and added little value for investors with long positions. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. In spite of rather weak fundamental indicators, WisdomTree Continuous exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more

ProShares UltraShort and WisdomTree Continuous Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares UltraShort and WisdomTree Continuous

Two-leg strategies using ProShares UltraShort and WisdomTree Continuous matter because the combined position can be designed to be more market-neutral. A pair setup only works when both legs are monitored with the same discipline as a stand-alone position.
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The analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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