Correlation Between DSJA and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both DSJA 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 DSJA and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and ProShares UltraPro Short, you can compare the effects of market volatilities on DSJA 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 DSJA with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and ProShares UltraPro.
Diversification Opportunities for DSJA and ProShares UltraPro
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and ProShares is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding DSJA 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 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 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 DSJA i.e., DSJA and ProShares UltraPro go up and down completely randomly.
Pair Corralation between DSJA and ProShares UltraPro
If you would invest 2,865 in DSJA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding DSJA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
DSJA vs. ProShares UltraPro Short
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares UltraPro Short |
DSJA and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and ProShares UltraPro
The main advantage of trading using opposite DSJA and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA 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.The idea behind DSJA and ProShares UltraPro Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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