Correlation Between ProShares Ultra and FT Vest
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and FT Vest 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 FT Vest 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 FT Vest Nasdaq 100, you can compare the effects of market volatilities on ProShares Ultra and FT Vest 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 FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and FT Vest.
Diversification Opportunities for ProShares Ultra and FT Vest
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and QCOC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra QQQ and FT Vest Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Nasdaq 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Nasdaq has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and FT Vest go up and down completely randomly.
Pair Corralation between ProShares Ultra and FT Vest
Considering the 90-day investment horizon ProShares Ultra QQQ is expected to generate 4.88 times more return on investment than FT Vest. However, ProShares Ultra is 4.88 times more volatile than FT Vest Nasdaq 100. It trades about 0.1 of its potential returns per unit of risk. FT Vest Nasdaq 100 is currently generating about 0.1 per unit of risk. If you would invest 4,402 in ProShares Ultra QQQ on October 23, 2024 and sell it today you would earn a total of 6,817 from holding ProShares Ultra QQQ or generate 154.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 12.55% |
| Values | Daily Returns |
ProShares Ultra QQQ vs. FT Vest Nasdaq 100
Performance |
| Timeline |
| ProShares Ultra QQQ |
| FT Vest Nasdaq |
ProShares Ultra and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and FT Vest
The main advantage of trading using opposite ProShares Ultra and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest'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 |
| FT Vest vs. FT Vest Equity | FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |