Correlation Between ProShares Ultra and UBS
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and UBS 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 UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Oil and UBS, you can compare the effects of market volatilities on ProShares Ultra and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and UBS.
Diversification Opportunities for ProShares Ultra and UBS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Oil and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 Oil are associated (or correlated) with UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and UBS go up and down completely randomly.
Pair Corralation between ProShares Ultra and UBS
If you would invest (100.00) in UBS on November 28, 2024 and sell it today you would earn a total of 100.00 from holding UBS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Ultra Oil vs. UBS
Performance |
| Timeline |
| ProShares Ultra Oil |
| UBS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares Ultra and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and UBS
The main advantage of trading using opposite ProShares Ultra and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.| ProShares Ultra vs. ProShares UltraShort Oil | ProShares Ultra vs. ProShares Ultra Basic | ProShares Ultra vs. ProShares Ultra Financials | ProShares Ultra vs. ProShares Ultra Real |
| UBS vs. ProShares MSCI EAFE | UBS vs. ProShares MSCI Emerging | UBS vs. ProShares SP MidCap | UBS vs. ProShares Russell 2000 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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