Correlation Between Howard Hughes and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Howard Hughes 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 Howard Hughes and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Howard Hughes and ProShares Ultra VIX, you can compare the effects of market volatilities on Howard Hughes 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 Howard Hughes with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Howard Hughes and ProShares Ultra.
Diversification Opportunities for Howard Hughes and ProShares Ultra
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Howard and ProShares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Howard Hughes and ProShares Ultra VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra VIX and Howard Hughes 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 Howard Hughes 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 VIX has no effect on the direction of Howard Hughes i.e., Howard Hughes and ProShares Ultra go up and down completely randomly.
Pair Corralation between Howard Hughes and ProShares Ultra
Considering the 90-day investment horizon Howard Hughes is expected to generate 0.32 times more return on investment than ProShares Ultra. However, Howard Hughes is 3.15 times less risky than ProShares Ultra. It trades about 0.33 of its potential returns per unit of risk. ProShares Ultra VIX is currently generating about -0.23 per unit of risk. If you would invest 7,620 in Howard Hughes on August 31, 2024 and sell it today you would earn a total of 1,068 from holding Howard Hughes or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Howard Hughes vs. ProShares Ultra VIX
Performance |
| Timeline |
| Howard Hughes |
| ProShares Ultra VIX |
Howard Hughes and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Howard Hughes and ProShares Ultra
The main advantage of trading using opposite Howard Hughes and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Howard Hughes 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.| Howard Hughes vs. Embrace Change Acquisition | Howard Hughes vs. New York City | Howard Hughes vs. Site Centers Corp | Howard Hughes vs. Solowin Holdings Ordinary |
| ProShares Ultra vs. ProShares UltraPro Short | ProShares Ultra vs. ProShares Short VIX | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares UltraPro QQQ |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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