Correlation Between ProShares UltraPro and PYPS
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and PYPS 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 UltraPro and PYPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro Short and PYPS, you can compare the effects of market volatilities on ProShares UltraPro and PYPS 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 UltraPro with a short position of PYPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and PYPS.
Diversification Opportunities for ProShares UltraPro and PYPS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and PYPS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro Short and PYPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PYPS and ProShares UltraPro 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 UltraPro Short are associated (or correlated) with PYPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PYPS has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and PYPS go up and down completely randomly.
Pair Corralation between ProShares UltraPro and PYPS
If you would invest 2,276 in ProShares UltraPro Short on December 31, 2024 and sell it today you would earn a total of 324.00 from holding ProShares UltraPro Short or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares UltraPro Short vs. PYPS
Performance |
| Timeline |
| ProShares UltraPro Short |
| PYPS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares UltraPro and PYPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and PYPS
The main advantage of trading using opposite ProShares UltraPro and PYPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, PYPS 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 PYPS will offset losses from the drop in PYPS's long position.| ProShares UltraPro vs. ProShares UltraPro Short | ||
| ProShares UltraPro vs. ProShares UltraPro Short | ||
| ProShares UltraPro vs. ProShares UltraPro SP500 | ||
| ProShares UltraPro vs. Direxion Daily SP |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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