Correlation Between ProShares UltraShort and WisdomTree Corporate

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How much single-name risk can be diversified by combining ProShares UltraShort Semiconductors and WisdomTree Corporate Bond? This module highlights the diversifiable risk of combining ProShares UltraShort Semiconductors and WisdomTree Corporate Bond and frames portfolio overlap.
Measure interaction between ProShares UltraShort Semiconductors and WisdomTree Corporate Bond before allocating capital to both in the same strategy. You can also test a long ProShares UltraShort and short WisdomTree Corporate structure to evaluate relative-value behavior. Review volatility patterns in ProShares UltraShort and WisdomTree Corporate. Go to your portfolio center

Diversification Opportunities for ProShares UltraShort and WisdomTree Corporate

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between ProShares and WisdomTree is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Semicondu and WisdomTree Corporate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Corporate Bond 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 Semiconductors are associated (or correlated) with WisdomTree Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Corporate Bond has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and WisdomTree Corporate go up and down completely randomly.

Pair Corralation between ProShares UltraShort and WisdomTree Corporate

Considering the 90-day investment horizon ProShares UltraShort Semiconductors is expected to under-perform the WisdomTree Corporate. In addition to that, ProShares UltraShort is 21.9 times more volatile than WisdomTree Corporate Bond. It trades about -0.02 of its total potential returns per unit of risk. WisdomTree Corporate Bond is currently generating about 0.05 per unit of volatility. If you had invested $ 4,464 in WisdomTree Corporate Bond on December 11, 2025 and sold it today you would have earned a total of $ 28.50 from holding WisdomTree Corporate Bond or generated 0.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ProShares UltraShort Semicondu  vs.  WisdomTree Corporate Bond

 Performance 
       Timeline  
ProShares UltraShort 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, ProShares UltraShort Semiconductors generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. Despite nearly stable basic indicators, ProShares UltraShort is not utilizing all of its potential. The latest price disturbance may contribute to mid-run losses for stockholders. ...more
WisdomTree Corporate Bond 
Risk-Adjusted Performance
Mild
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree Corporate Bond rank lower than 4% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. Despite nearly stable forward indicators, WisdomTree Corporate is not utilizing all of its potential. The latest price disturbance may contribute to mid-run losses for stockholders. ...more

ProShares UltraShort and WisdomTree Corporate Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares UltraShort and WisdomTree Corporate

Pair trading between ProShares UltraShort and WisdomTree Corporate can reduce some unsystematic risk by balancing one position against another. Used correctly, the structure can help offset losses in one leg when unexpected sector or market pressure hits both names.
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The information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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