Correlation Between ProShares Ultra and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Calamos ETF 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 Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Technology and Calamos ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and Calamos ETF 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 Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Calamos ETF.
Diversification Opportunities for ProShares Ultra and Calamos ETF
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Technology and Calamos ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos ETF Trust 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 Technology are associated (or correlated) with Calamos ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Calamos ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and Calamos ETF
Considering the 90-day investment horizon ProShares Ultra Technology is expected to generate 9.27 times more return on investment than Calamos ETF. However, ProShares Ultra is 9.27 times more volatile than Calamos ETF Trust. It trades about 0.09 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.19 per unit of risk. If you would invest 2,559 in ProShares Ultra Technology on August 30, 2024 and sell it today you would earn a total of 4,397 from holding ProShares Ultra Technology or generate 171.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 21.41% |
| Values | Daily Returns |
ProShares Ultra Technology vs. Calamos ETF Trust
Performance |
| Timeline |
| ProShares Ultra Tech |
| Calamos ETF Trust |
ProShares Ultra and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Calamos ETF
The main advantage of trading using opposite ProShares Ultra and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Calamos ETF 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 Calamos ETF will offset losses from the drop in Calamos ETF's long position.| ProShares Ultra vs. ProShares Ultra Health | ProShares Ultra vs. ProShares Ultra Semiconductors | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Consumer |
| Calamos ETF vs. Dimensional ETF Trust | Calamos ETF vs. Vanguard Small Cap Index | Calamos ETF vs. First Trust Multi Manager | Calamos ETF vs. Vanguard SP Small Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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