Correlation Between SCOR PK and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both SCOR PK and ProShares UltraPro 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 SCOR PK and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and ProShares UltraPro Short, you can compare the effects of market volatilities on SCOR PK and ProShares UltraPro 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 SCOR PK with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and ProShares UltraPro.
Diversification Opportunities for SCOR PK and ProShares UltraPro
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCOR and ProShares is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and SCOR PK 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 SCOR PK are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of SCOR PK i.e., SCOR PK and ProShares UltraPro go up and down completely randomly.
Pair Corralation between SCOR PK and ProShares UltraPro
Assuming the 90 days horizon SCOR PK is expected to generate 0.88 times more return on investment than ProShares UltraPro. However, SCOR PK is 1.13 times less risky than ProShares UltraPro. It trades about 0.2 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.08 per unit of risk. If you would invest 221.00 in SCOR PK on August 27, 2024 and sell it today you would earn a total of 29.00 from holding SCOR PK or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR PK vs. ProShares UltraPro Short
Performance |
| Timeline |
| SCOR PK |
| ProShares UltraPro Short |
SCOR PK and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and ProShares UltraPro
The main advantage of trading using opposite SCOR PK and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.The idea behind SCOR PK and ProShares UltraPro Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ProShares UltraPro vs. ProShares UltraPro QQQ | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares Ultra VIX |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| 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 | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |