Correlation Between GraniteShares ETF and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF 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 GraniteShares ETF and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and ProShares UltraPro Short, you can compare the effects of market volatilities on GraniteShares ETF 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 GraniteShares ETF with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and ProShares UltraPro.
Diversification Opportunities for GraniteShares ETF and ProShares UltraPro
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and ProShares is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust 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 GraniteShares ETF 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 ETF Trust 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 GraniteShares ETF i.e., GraniteShares ETF and ProShares UltraPro go up and down completely randomly.
Pair Corralation between GraniteShares ETF and ProShares UltraPro
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 2.5 times more return on investment than ProShares UltraPro. However, GraniteShares ETF is 2.5 times more volatile than ProShares UltraPro Short. It trades about 0.11 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.05 per unit of risk. If you would invest 616.00 in GraniteShares ETF Trust on September 2, 2024 and sell it today you would earn a total of 4,722 from holding GraniteShares ETF Trust or generate 766.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. ProShares UltraPro Short
Performance |
| Timeline |
| GraniteShares ETF Trust |
| ProShares UltraPro Short |
GraniteShares ETF and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and ProShares UltraPro
The main advantage of trading using opposite GraniteShares ETF and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF 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.| GraniteShares ETF vs. GraniteShares ETF Trust | GraniteShares ETF vs. Direxion Shares ETF | GraniteShares ETF vs. Direxion Daily AMZN | GraniteShares ETF vs. Direxion Daily GOOGL |
| ProShares UltraPro vs. Dimensional ETF Trust | ProShares UltraPro vs. Vanguard Small Cap Index | ProShares UltraPro vs. First Trust Multi Manager | ProShares UltraPro vs. Vanguard SP Small Cap |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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