Correlation Between ProShares UltraShort and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Amplify Cash 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 Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort MSCI and Amplify Cash Flow, you can compare the effects of market volatilities on ProShares UltraShort and Amplify Cash 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 Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Amplify Cash.
Diversification Opportunities for ProShares UltraShort and Amplify Cash
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Amplify is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort MSCI and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow 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 MSCI are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Amplify Cash go up and down completely randomly.
Pair Corralation between ProShares UltraShort and Amplify Cash
Considering the 90-day investment horizon ProShares UltraShort is expected to generate 1.42 times less return on investment than Amplify Cash. In addition to that, ProShares UltraShort is 3.21 times more volatile than Amplify Cash Flow. It trades about 0.08 of its total potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.37 per unit of volatility. If you would invest 2,529 in Amplify Cash Flow on October 23, 2024 and sell it today you would earn a total of 95.00 from holding Amplify Cash Flow or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraShort MSCI vs. Amplify Cash Flow
Performance |
| Timeline |
| ProShares UltraShort MSCI |
| Amplify Cash Flow |
ProShares UltraShort and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and Amplify Cash
The main advantage of trading using opposite ProShares UltraShort and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Amplify Cash 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 Amplify Cash will offset losses from the drop in Amplify Cash's long position.| ProShares UltraShort vs. ProShares UltraShort MSCI | ProShares UltraShort vs. ProShares Short MSCI | ProShares UltraShort vs. ProShares UltraShort MSCI | ProShares UltraShort vs. ProShares UltraShort Health |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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