Correlation Between FT Cboe and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both FT Cboe 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 FT Cboe and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Cboe Vest and ProShares Ultra Yen, you can compare the effects of market volatilities on FT Cboe 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 FT Cboe with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and ProShares Ultra.
Diversification Opportunities for FT Cboe and ProShares Ultra
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSEP and ProShares is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest 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 FT Cboe 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 FT Cboe Vest 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 FT Cboe i.e., FT Cboe and ProShares Ultra go up and down completely randomly.
Pair Corralation between FT Cboe and ProShares Ultra
Given the investment horizon of 90 days FT Cboe is expected to generate 5.73 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, FT Cboe Vest is 6.17 times less risky than ProShares Ultra. It trades about 0.19 of its potential returns per unit of risk. ProShares Ultra Yen is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,138 in ProShares Ultra Yen on September 10, 2024 and sell it today you would earn a total of 98.00 from holding ProShares Ultra Yen or generate 4.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FT Cboe Vest vs. ProShares Ultra Yen
Performance |
Timeline |
FT Cboe Vest |
ProShares Ultra Yen |
FT Cboe and ProShares Ultra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FT Cboe and ProShares Ultra
The main advantage of trading using opposite FT Cboe and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe 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.FT Cboe vs. FT Cboe Vest | FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Exchange Traded | FT Cboe vs. FT Cboe Vest |
ProShares Ultra vs. ETRACS 2xMonthly Pay | ProShares Ultra vs. ETRACS Monthly Pay | ProShares Ultra vs. ETRACS Monthly Pay | ProShares Ultra vs. ETRACS Monthly Pay |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |