Correlation Between Aquagold International and ProShares Ultra

Specify exactly 2 symbols:
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

Given the investment horizon of 90 days Aquagold International is expected to under-perform the ProShares Ultra. In addition to that, Aquagold International is 3.7 times more volatile than ProShares Ultra Yen. It trades about -0.03 of its total potential returns per unit of risk. ProShares Ultra Yen is currently generating about -0.02 per unit of volatility. If you would invest  2,491  in ProShares Ultra Yen on September 10, 2024 and sell it today you would lose (292.00) from holding ProShares Ultra Yen or give up 11.72% of portfolio value 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

0 of 100

 
Weak
 
Strong
Very Weak
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

0 of 100

 
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 unsteady performance in the last few months, the Etf's fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing 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.
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Correlations
Find global opportunities by holding instruments from different markets
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities