Correlation Between AdvisorShares Dorsey and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Dorsey 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 AdvisorShares Dorsey and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Dorsey Wright and ProShares UltraPro MidCap400, you can compare the effects of market volatilities on AdvisorShares Dorsey 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 AdvisorShares Dorsey with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Dorsey and ProShares UltraPro.
Diversification Opportunities for AdvisorShares Dorsey and ProShares UltraPro
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AdvisorShares and ProShares is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Dorsey Wright and ProShares UltraPro MidCap400 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro and AdvisorShares Dorsey 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 AdvisorShares Dorsey Wright 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 has no effect on the direction of AdvisorShares Dorsey i.e., AdvisorShares Dorsey and ProShares UltraPro go up and down completely randomly.
Pair Corralation between AdvisorShares Dorsey and ProShares UltraPro
Given the investment horizon of 90 days AdvisorShares Dorsey Wright is expected to under-perform the ProShares UltraPro. But the etf apears to be less risky and, when comparing its historical volatility, AdvisorShares Dorsey Wright is 2.24 times less risky than ProShares UltraPro. The etf trades about -0.02 of its potential returns per unit of risk. The ProShares UltraPro MidCap400 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,950 in ProShares UltraPro MidCap400 on September 3, 2024 and sell it today you would earn a total of 1,462 from holding ProShares UltraPro MidCap400 or generate 74.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Dorsey Wright vs. ProShares UltraPro MidCap400
Performance |
| Timeline |
| AdvisorShares Dorsey |
| ProShares UltraPro |
AdvisorShares Dorsey and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Dorsey and ProShares UltraPro
The main advantage of trading using opposite AdvisorShares Dorsey and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Dorsey 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.| AdvisorShares Dorsey vs. ProShares UltraShort FTSE | AdvisorShares Dorsey vs. ProShares UltraShort MSCI | AdvisorShares Dorsey vs. ProShares Ultra MSCI | AdvisorShares Dorsey vs. ProShares UltraShort MSCI |
| ProShares UltraPro vs. ProShares UltraPro Russell2000 | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. Direxion Daily Mid | ProShares UltraPro vs. ProShares Ultra SmallCap600 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |