Correlation Between ProShares UltraShort and ProShares
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and ProShares 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 ProShares UltraShort and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort Euro and ProShares, you can compare the effects of market volatilities on ProShares UltraShort and ProShares 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 ProShares UltraShort with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and ProShares.
Diversification Opportunities for ProShares UltraShort and ProShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Euro and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares and ProShares UltraShort 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 ProShares UltraShort Euro are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and ProShares go up and down completely randomly.
Pair Corralation between ProShares UltraShort and ProShares
If you would invest 3,030 in ProShares UltraShort Euro on September 3, 2024 and sell it today you would earn a total of 367.00 from holding ProShares UltraShort Euro or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares UltraShort Euro vs. ProShares
Performance |
| Timeline |
| ProShares UltraShort Euro |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and ProShares
The main advantage of trading using opposite ProShares UltraShort and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, ProShares 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 will offset losses from the drop in ProShares' long position.| ProShares UltraShort vs. FT Cboe Vest | ProShares UltraShort vs. Aquagold International | ProShares UltraShort vs. Morningstar Unconstrained Allocation | ProShares UltraShort vs. High Yield Municipal Fund |
| ProShares vs. ProShares Ultra SP500 | ProShares vs. Direxion Daily SP500 | ProShares vs. ProShares Ultra QQQ | ProShares vs. Direxion Daily SP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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