Correlation Between ProShares Ultra and John Hancock
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and John Hancock 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 ProShares Ultra and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Bloomberg and John Hancock Hedged, you can compare the effects of market volatilities on ProShares Ultra and John Hancock 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 ProShares Ultra with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and John Hancock.
Diversification Opportunities for ProShares Ultra and John Hancock
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and John is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Bloomberg and John Hancock Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Hedged and ProShares Ultra 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 ProShares Ultra Bloomberg are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Hedged has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and John Hancock go up and down completely randomly.
Pair Corralation between ProShares Ultra and John Hancock
Given the investment horizon of 90 days ProShares Ultra Bloomberg is expected to generate 11.37 times more return on investment than John Hancock. However, ProShares Ultra is 11.37 times more volatile than John Hancock Hedged. It trades about 0.05 of its potential returns per unit of risk. John Hancock Hedged is currently generating about 0.02 per unit of risk. If you would invest 4,535 in ProShares Ultra Bloomberg on November 2, 2024 and sell it today you would earn a total of 626.00 from holding ProShares Ultra Bloomberg or generate 13.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Bloomberg vs. John Hancock Hedged
Performance |
| Timeline |
| ProShares Ultra Bloomberg |
| John Hancock Hedged |
ProShares Ultra and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and John Hancock
The main advantage of trading using opposite ProShares Ultra and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| ProShares Ultra vs. United States Brent | ProShares Ultra vs. ProShares K 1 Free | ProShares Ultra vs. Invesco DB Energy | ProShares Ultra vs. Invesco DB Oil |
| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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