Correlation Between Global X and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both Global X and ProShares UltraPro 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 Global X and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Artificial and ProShares UltraPro Short, you can compare the effects of market volatilities on Global X and ProShares UltraPro 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 Global X with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and ProShares UltraPro.
Diversification Opportunities for Global X and ProShares UltraPro
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and ProShares is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Global X Artificial and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and Global X 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 Global X Artificial are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of Global X i.e., Global X and ProShares UltraPro go up and down completely randomly.
Pair Corralation between Global X and ProShares UltraPro
Considering the 90-day investment horizon Global X Artificial is expected to generate 0.34 times more return on investment than ProShares UltraPro. However, Global X Artificial is 2.93 times less risky than ProShares UltraPro. It trades about 0.07 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about 0.0 per unit of risk. If you would invest 3,949 in Global X Artificial on October 24, 2024 and sell it today you would earn a total of 59.00 from holding Global X Artificial or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Artificial vs. ProShares UltraPro Short
Performance |
| Timeline |
| Global X Artificial |
| ProShares UltraPro Short |
Global X and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and ProShares UltraPro
The main advantage of trading using opposite Global X and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, ProShares UltraPro 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 ProShares UltraPro will offset losses from the drop in ProShares UltraPro's long position.| Global X vs. First Trust Nasdaq | Global X vs. Global X Robotics | Global X vs. Global X FinTech | Global X vs. Global X Internet |
| ProShares UltraPro vs. ProShares UltraPro QQQ | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares Ultra VIX |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |