Correlation Between Akros Monthly and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both Akros Monthly and ProShares UltraPro 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 Akros Monthly and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akros Monthly Payout and ProShares UltraPro Short, you can compare the effects of market volatilities on Akros Monthly and ProShares UltraPro 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 Akros Monthly with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akros Monthly and ProShares UltraPro.
Diversification Opportunities for Akros Monthly and ProShares UltraPro
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akros and ProShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Akros Monthly Payout and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and Akros Monthly 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 Akros Monthly Payout are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of Akros Monthly i.e., Akros Monthly and ProShares UltraPro go up and down completely randomly.
Pair Corralation between Akros Monthly and ProShares UltraPro
Given the investment horizon of 90 days Akros Monthly Payout is expected to generate 0.27 times more return on investment than ProShares UltraPro. However, Akros Monthly Payout is 3.76 times less risky than ProShares UltraPro. It trades about 0.09 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.03 per unit of risk. If you would invest 2,572 in Akros Monthly Payout on November 4, 2024 and sell it today you would earn a total of 44.00 from holding Akros Monthly Payout or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akros Monthly Payout vs. ProShares UltraPro Short
Performance |
| Timeline |
| Akros Monthly Payout |
| ProShares UltraPro Short |
Akros Monthly and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akros Monthly and ProShares UltraPro
The main advantage of trading using opposite Akros Monthly and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akros Monthly position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.| Akros Monthly vs. Bionik Laboratories Corp | Akros Monthly vs. Mobivity Holdings | Akros Monthly vs. Rafina Innovations | Akros Monthly vs. Magellan Gold Corp |
| ProShares UltraPro vs. ProShares UltraPro QQQ | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares Ultra VIX |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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