Correlation Between DSJA and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both DSJA and ProShares UltraShort 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 DSJA and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and ProShares UltraShort Oil, you can compare the effects of market volatilities on DSJA and ProShares UltraShort 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 DSJA with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and ProShares UltraShort.
Diversification Opportunities for DSJA and ProShares UltraShort
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and ProShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and ProShares UltraShort Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort Oil and DSJA 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 DSJA are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort Oil has no effect on the direction of DSJA i.e., DSJA and ProShares UltraShort go up and down completely randomly.
Pair Corralation between DSJA and ProShares UltraShort
Given the investment horizon of 90 days DSJA is expected to generate 0.27 times more return on investment than ProShares UltraShort. However, DSJA is 3.66 times less risky than ProShares UltraShort. It trades about 0.14 of its potential returns per unit of risk. ProShares UltraShort Oil is currently generating about -0.02 per unit of risk. If you would invest 2,468 in DSJA on August 30, 2024 and sell it today you would earn a total of 397.00 from holding DSJA or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.31% |
| Values | Daily Returns |
DSJA vs. ProShares UltraShort Oil
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares UltraShort Oil |
DSJA and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and ProShares UltraShort
The main advantage of trading using opposite DSJA and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, ProShares UltraShort 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 UltraShort will offset losses from the drop in ProShares UltraShort's long position.| DSJA vs. ProShares VIX Mid Term | DSJA vs. ProShares VIX Short Term | DSJA vs. iPath Series B | DSJA vs. ProShares Short 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |