Correlation Between T Rex and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both T Rex 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 T Rex and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and ProShares Ultra MSCI, you can compare the effects of market volatilities on T Rex 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 T Rex with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and ProShares Ultra.
Diversification Opportunities for T Rex and ProShares Ultra
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NVDX and ProShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and ProShares Ultra MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra MSCI and T Rex 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 T Rex 2X Long 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 MSCI has no effect on the direction of T Rex i.e., T Rex and ProShares Ultra go up and down completely randomly.
Pair Corralation between T Rex and ProShares Ultra
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 3.8 times more return on investment than ProShares Ultra. However, T Rex is 3.8 times more volatile than ProShares Ultra MSCI. It trades about 0.13 of its potential returns per unit of risk. ProShares Ultra MSCI is currently generating about 0.04 per unit of risk. If you would invest 249.00 in T Rex 2X Long on September 14, 2024 and sell it today you would earn a total of 1,371 from holding T Rex 2X Long or generate 550.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 58.91% |
| Values | Daily Returns |
T Rex 2X Long vs. ProShares Ultra MSCI
Performance |
| Timeline |
| T Rex 2X |
| ProShares Ultra MSCI |
T Rex and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and ProShares Ultra
The main advantage of trading using opposite T Rex and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex 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.| T Rex vs. Freedom Day Dividend | T Rex vs. Franklin Templeton ETF | T Rex vs. iShares MSCI China | T Rex vs. Tidal Trust II |
| ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra FTSE | ProShares Ultra vs. ProShares Ultra Telecommunications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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