Correlation Between ProShares UltraShort and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Innovator Capital 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 Innovator Capital 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 Innovator Capital Management, you can compare the effects of market volatilities on ProShares UltraShort and Innovator Capital 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 Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Innovator Capital.
Diversification Opportunities for ProShares UltraShort and Innovator Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Innovator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Euro and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital 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 Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Innovator Capital go up and down completely randomly.
Pair Corralation between ProShares UltraShort and Innovator Capital
If you would invest 3,044 in ProShares UltraShort Euro on November 28, 2024 and sell it today you would earn a total of 356.00 from holding ProShares UltraShort Euro or generate 11.7% 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. Innovator Capital Management
Performance |
| Timeline |
| ProShares UltraShort Euro |
| Innovator Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares UltraShort and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and Innovator Capital
The main advantage of trading using opposite ProShares UltraShort and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Innovator Capital 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 Innovator Capital will offset losses from the drop in Innovator Capital's long position.| ProShares UltraShort vs. ProShares UltraShort Yen | ProShares UltraShort vs. ProShares Ultra Euro | ProShares UltraShort vs. ProShares UltraShort FTSE | ProShares UltraShort vs. ProShares UltraShort Gold |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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