Caching techniques are widely used in today's computing infrastructure from virtual memory management to server cache and memory cache. This paper builds on two observations. First, the space utilization in cache can be improved by varying the cache size based on dynamic application demand. Second, it is easier to predict application behavior statistically than precisely. This paper presents a new variable-size cache that uses statistical knowledge of program behavior to maximize the cache performance. We measure performance using data access traces from real-world workloads, including Memcached traces from Facebook and storage traces from Microsoft Research. In an offline setting, the new cache is demonstrated to outperform even OPT, the optimal fixed-size cache which makes use of precise knowledge of program behavior.