Correlation Between ProShares UltraPro and WisdomTree Global
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and WisdomTree Global 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 UltraPro and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro SP500 and WisdomTree Global High, you can compare the effects of market volatilities on ProShares UltraPro and WisdomTree Global 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 UltraPro with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and WisdomTree Global.
Diversification Opportunities for ProShares UltraPro and WisdomTree Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and WisdomTree is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and WisdomTree Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global High and ProShares UltraPro 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 UltraPro SP500 are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global High has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and WisdomTree Global go up and down completely randomly.
Pair Corralation between ProShares UltraPro and WisdomTree Global
Given the investment horizon of 90 days ProShares UltraPro SP500 is expected to generate 4.02 times more return on investment than WisdomTree Global. However, ProShares UltraPro is 4.02 times more volatile than WisdomTree Global High. It trades about 0.06 of its potential returns per unit of risk. WisdomTree Global High is currently generating about 0.1 per unit of risk. If you would invest 5,762 in ProShares UltraPro SP500 on October 23, 2025 and sell it today you would earn a total of 5,897 from holding ProShares UltraPro SP500 or generate 102.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. WisdomTree Global High
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| WisdomTree Global High |
ProShares UltraPro and WisdomTree Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and WisdomTree Global
The main advantage of trading using opposite ProShares UltraPro and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, WisdomTree Global 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 WisdomTree Global will offset losses from the drop in WisdomTree Global's long position.| ProShares UltraPro vs. ProShares Ultra SP500 | ProShares UltraPro vs. Direxion Daily SP500 | ProShares UltraPro vs. ProShares Ultra QQQ | ProShares UltraPro vs. Bank of Montreal |
| WisdomTree Global vs. iShares Oil Equipment | WisdomTree Global vs. iShares MSCI China | WisdomTree Global vs. Pacer Emerging Markets | WisdomTree Global vs. iShares MSCI Austria |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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