Correlation Between Grayscale Ethereum and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum 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 Grayscale Ethereum and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Ethereum Mini and ProShares Ultra High, you can compare the effects of market volatilities on Grayscale Ethereum 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 Grayscale Ethereum with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and ProShares Ultra.
Diversification Opportunities for Grayscale Ethereum and ProShares Ultra
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grayscale and ProShares is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and ProShares Ultra High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra High and Grayscale Ethereum 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 Grayscale Ethereum Mini 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 High has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and ProShares Ultra go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and ProShares Ultra
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to generate 8.29 times more return on investment than ProShares Ultra. However, Grayscale Ethereum is 8.29 times more volatile than ProShares Ultra High. It trades about 0.03 of its potential returns per unit of risk. ProShares Ultra High is currently generating about 0.11 per unit of risk. If you would invest 3,270 in Grayscale Ethereum Mini on September 2, 2024 and sell it today you would earn a total of 114.00 from holding Grayscale Ethereum Mini or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.5% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. ProShares Ultra High
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| ProShares Ultra High |
Grayscale Ethereum and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and ProShares Ultra
The main advantage of trading using opposite Grayscale Ethereum and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum 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.| Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. Grayscale Ethereum Trust |
| ProShares Ultra vs. Grayscale Bitcoin Mini | ProShares Ultra vs. T REX 2X Long | ProShares Ultra vs. Grayscale Ethereum Mini | ProShares Ultra vs. Eaton Vance Enhanced |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets |