Correlation Between Bank Of Montreal and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Bank Of Montreal 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 Bank Of Montreal and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Of Montreal and ProShares Ultra Basic, you can compare the effects of market volatilities on Bank Of Montreal 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 Bank Of Montreal with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Of Montreal and ProShares Ultra.
Diversification Opportunities for Bank Of Montreal and ProShares Ultra
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and ProShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of Montreal and ProShares Ultra Basic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Basic and Bank Of Montreal 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 Bank Of Montreal 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 Basic has no effect on the direction of Bank Of Montreal i.e., Bank Of Montreal and ProShares Ultra go up and down completely randomly.
Pair Corralation between Bank Of Montreal and ProShares Ultra
If you would invest 50,248 in Bank Of Montreal on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Bank Of Montreal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Of Montreal vs. ProShares Ultra Basic
Performance |
| Timeline |
| Bank Of Montreal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Basic |
Bank Of Montreal and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Of Montreal and ProShares Ultra
The main advantage of trading using opposite Bank Of Montreal and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Of Montreal 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.| Bank Of Montreal vs. MicroSectors FANG Index | Bank Of Montreal vs. MicroSectors Solactive FANG | Bank Of Montreal vs. Direxion Daily Regional |
| ProShares Ultra vs. Direxion Daily SP | ProShares Ultra vs. Direxion Daily Semiconductor | ProShares Ultra vs. Direxion Daily Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |