Correlation Between ProShares Ultra and GraniteShares 15x
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and GraniteShares 15x 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 GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra SP500 and GraniteShares 15x Long, you can compare the effects of market volatilities on ProShares Ultra and GraniteShares 15x 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 GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and GraniteShares 15x.
Diversification Opportunities for ProShares Ultra and GraniteShares 15x
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and GraniteShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra SP500 and GraniteShares 15x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 15x Long 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 SP500 are associated (or correlated) with GraniteShares 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 15x Long has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and GraniteShares 15x go up and down completely randomly.
Pair Corralation between ProShares Ultra and GraniteShares 15x
Considering the 90-day investment horizon ProShares Ultra is expected to generate 5.39 times less return on investment than GraniteShares 15x. But when comparing it to its historical volatility, ProShares Ultra SP500 is 3.45 times less risky than GraniteShares 15x. It trades about 0.09 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 391.00 in GraniteShares 15x Long on August 23, 2024 and sell it today you would earn a total of 7,751 from holding GraniteShares 15x Long or generate 1982.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.59% |
| Values | Daily Returns |
ProShares Ultra SP500 vs. GraniteShares 15x Long
Performance |
| Timeline |
| ProShares Ultra SP500 |
| GraniteShares 15x Long |
ProShares Ultra and GraniteShares 15x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and GraniteShares 15x
The main advantage of trading using opposite ProShares Ultra and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, GraniteShares 15x 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 GraniteShares 15x will offset losses from the drop in GraniteShares 15x's long position.| ProShares Ultra vs. ProShares Ultra QQQ | ProShares Ultra vs. ProShares Ultra Dow30 | ProShares Ultra vs. ProShares UltraShort SP500 | ProShares Ultra vs. ProShares Ultra Financials |
| GraniteShares 15x vs. ProShares Ultra SP500 | GraniteShares 15x vs. ProShares Ultra QQQ | GraniteShares 15x vs. ProShares UltraPro SP500 | GraniteShares 15x vs. Direxion Daily Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |