Correlation Between Aquagold International and ProShares Ultra

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Can any of the company-specific risk be diversified away by investing in both Aquagold International and ProShares Ultra 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 Aquagold International and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and ProShares Ultra Yen, you can compare the effects of market volatilities on Aquagold International and ProShares Ultra 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 Aquagold International with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and ProShares Ultra.

Diversification Opportunities for Aquagold International and ProShares Ultra

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aquagold and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and ProShares Ultra Yen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Yen and Aquagold International 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 Aquagold International are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Yen has no effect on the direction of Aquagold International i.e., Aquagold International and ProShares Ultra go up and down completely randomly.

Pair Corralation between Aquagold International and ProShares Ultra

If you would invest  2,147  in ProShares Ultra Yen on September 5, 2024 and sell it today you would earn a total of  73.00  from holding ProShares Ultra Yen or generate 3.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aquagold International  vs.  ProShares Ultra Yen

 Performance 
       Timeline  
Aquagold International 

Risk-Adjusted Performance

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Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
ProShares Ultra Yen 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days ProShares Ultra Yen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

Aquagold International and ProShares Ultra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aquagold International and ProShares Ultra

The main advantage of trading using opposite Aquagold International and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, ProShares Ultra 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 Ultra will offset losses from the drop in ProShares Ultra's long position.
The idea behind Aquagold International and ProShares Ultra Yen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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