ProShares Ultra Correlations

UCO Etf  USD 26.52  0.06  0.23%   
The current 90-days correlation between ProShares Ultra Bloomberg and ProShares UltraShort Bloomberg is -1.0 (i.e., Pay attention - limited upside). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ProShares Ultra moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ProShares Ultra Bloomberg moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

ProShares Ultra Correlation With Market

ProSharesDowDiversified AwayProSharesDowDiversified Away100%

Significant diversification

The correlation between ProShares Ultra Bloomberg and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Bloomberg and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares Ultra Bloomberg. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving against ProShares Etf

  0.55BND Vanguard Total BondPairCorr
  0.49HPQ HP IncPairCorr
  0.37WTIU UBS ETRACSPairCorr
  0.75DIS Walt DisneyPairCorr
  0.62VZ Verizon Communications Sell-off TrendPairCorr
  0.55DD Dupont De NemoursPairCorr
  0.46MCD McDonaldsPairCorr
  0.44AA Alcoa CorpPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
GUSHERX
NUGTERX
GUSHUSO
ERXUSO
NUGTGUSH
NUGTUSO
  
High negative correlations   
USOSCO
GUSHSCO
NUGTSCO
ERXSCO

ProShares Ultra Constituents Risk-Adjusted Indicators

There is a big difference between ProShares Etf performing well and ProShares Ultra ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze ProShares Ultra's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

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