Correlation Between ProShares Ultra and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Technology and iShares MSCI Emerging, you can compare the effects of market volatilities on ProShares Ultra and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and IShares MSCI.
Diversification Opportunities for ProShares Ultra and IShares MSCI
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and IShares is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Technology and iShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Emerging 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 Technology are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Emerging has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and IShares MSCI go up and down completely randomly.
Pair Corralation between ProShares Ultra and IShares MSCI
Considering the 90-day investment horizon ProShares Ultra Technology is expected to under-perform the IShares MSCI. In addition to that, ProShares Ultra is 2.44 times more volatile than iShares MSCI Emerging. It trades about 0.0 of its total potential returns per unit of risk. iShares MSCI Emerging is currently generating about 0.11 per unit of volatility. If you would invest 9,177 in iShares MSCI Emerging on October 9, 2025 and sell it today you would earn a total of 673.00 from holding iShares MSCI Emerging or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Technology vs. iShares MSCI Emerging
Performance |
| Timeline |
| ProShares Ultra Tech |
| iShares MSCI Emerging |
ProShares Ultra and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and IShares MSCI
The main advantage of trading using opposite ProShares Ultra and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| ProShares Ultra vs. Invesco Dynamic Semiconductors | ProShares Ultra vs. iShares Cybersecurity and | ProShares Ultra vs. ProShares Ultra Financials | ProShares Ultra vs. T Rowe Price |
| IShares MSCI vs. iShares Utilities ETF | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Spain | IShares MSCI vs. Freedom 100 Emerging |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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