Correlation Between GraniteShares 175x and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both GraniteShares 175x 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 GraniteShares 175x and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 175x Long and ProShares Ultra QQQ, you can compare the effects of market volatilities on GraniteShares 175x 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 GraniteShares 175x with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 175x and ProShares Ultra.
Diversification Opportunities for GraniteShares 175x and ProShares Ultra
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and ProShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 175x Long and ProShares Ultra QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra QQQ and GraniteShares 175x 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 GraniteShares 175x Long 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 QQQ has no effect on the direction of GraniteShares 175x i.e., GraniteShares 175x and ProShares Ultra go up and down completely randomly.
Pair Corralation between GraniteShares 175x and ProShares Ultra
Given the investment horizon of 90 days GraniteShares 175x Long is expected to under-perform the ProShares Ultra. In addition to that, GraniteShares 175x is 1.15 times more volatile than ProShares Ultra QQQ. It trades about -0.27 of its total potential returns per unit of risk. ProShares Ultra QQQ is currently generating about 0.02 per unit of volatility. If you would invest 11,342 in ProShares Ultra QQQ on October 9, 2024 and sell it today you would earn a total of 39.00 from holding ProShares Ultra QQQ or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 175x Long vs. ProShares Ultra QQQ
Performance |
| Timeline |
| GraniteShares 175x Long |
| ProShares Ultra QQQ |
GraniteShares 175x and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 175x and ProShares Ultra
The main advantage of trading using opposite GraniteShares 175x and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 175x 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.| GraniteShares 175x vs. GraniteShares 15x Long | GraniteShares 175x vs. GraniteShares ETF Trust | GraniteShares 175x vs. GraniteShares 15x Long | GraniteShares 175x vs. Direxion Daily GOOGL |
| ProShares Ultra vs. ProShares Ultra SP500 | ProShares Ultra vs. ProShares UltraShort QQQ | ProShares Ultra vs. ProShares Ultra Dow30 | ProShares Ultra vs. ProShares Ultra Russell2000 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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