Correlation Between Goldman Sachs and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Future and ProShares Ultra Consumer, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and ProShares Ultra.
Diversification Opportunities for Goldman Sachs and ProShares Ultra
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and ProShares is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and ProShares Ultra Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Consumer and Goldman Sachs 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 Goldman Sachs Future 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 Consumer has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and ProShares Ultra go up and down completely randomly.
Pair Corralation between Goldman Sachs and ProShares Ultra
Given the investment horizon of 90 days Goldman Sachs Future is expected to under-perform the ProShares Ultra. But the etf apears to be less risky and, when comparing its historical volatility, Goldman Sachs Future is 3.21 times less risky than ProShares Ultra. The etf trades about -0.34 of its potential returns per unit of risk. The ProShares Ultra Consumer is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,035 in ProShares Ultra Consumer on November 3, 2024 and sell it today you would earn a total of 491.00 from holding ProShares Ultra Consumer or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.0% |
| Values | Daily Returns |
Goldman Sachs Future vs. ProShares Ultra Consumer
Performance |
| Timeline |
| Goldman Sachs Future |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Consumer |
Goldman Sachs and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and ProShares Ultra
The main advantage of trading using opposite Goldman Sachs and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Goldman Sachs ETF | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future |
| ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Utilities | ProShares Ultra vs. ProShares Ultra Health |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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