Correlation Between ProShares Ultra and KLNE
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and KLNE 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 ProShares Ultra and KLNE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra QQQ and KLNE, you can compare the effects of market volatilities on ProShares Ultra and KLNE 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 ProShares Ultra with a short position of KLNE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and KLNE.
Diversification Opportunities for ProShares Ultra and KLNE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and KLNE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra QQQ and KLNE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLNE and ProShares Ultra 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 ProShares Ultra QQQ are associated (or correlated) with KLNE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLNE has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and KLNE go up and down completely randomly.
Pair Corralation between ProShares Ultra and KLNE
If you would invest (100.00) in KLNE on December 11, 2024 and sell it today you would earn a total of 100.00 from holding KLNE or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Ultra QQQ vs. KLNE
Performance |
| Timeline |
| ProShares Ultra QQQ |
| KLNE |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares Ultra and KLNE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and KLNE
The main advantage of trading using opposite ProShares Ultra and KLNE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, KLNE 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 KLNE will offset losses from the drop in KLNE's long position.| ProShares Ultra vs. ProShares Ultra SP500 | ||
| ProShares Ultra vs. ProShares UltraShort QQQ | ||
| ProShares Ultra vs. ProShares Ultra Dow30 | ||
| ProShares Ultra vs. ProShares Ultra Russell2000 |
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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