Correlation Between ProShares UltraShort and DB Base
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and DB Base 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 UltraShort and DB Base into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort 20 and DB Base Metals, you can compare the effects of market volatilities on ProShares UltraShort and DB Base 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 UltraShort with a short position of DB Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and DB Base.
Diversification Opportunities for ProShares UltraShort and DB Base
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and BDDXF is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort 20 and DB Base Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Base Metals and ProShares UltraShort 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 UltraShort 20 are associated (or correlated) with DB Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Base Metals has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and DB Base go up and down completely randomly.
Pair Corralation between ProShares UltraShort and DB Base
If you would invest 3,242 in ProShares UltraShort 20 on October 11, 2024 and sell it today you would earn a total of 546.00 from holding ProShares UltraShort 20 or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ProShares UltraShort 20 vs. DB Base Metals
Performance |
| Timeline |
| ProShares UltraShort |
| DB Base Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and DB Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and DB Base
The main advantage of trading using opposite ProShares UltraShort and DB Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, DB Base 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 DB Base will offset losses from the drop in DB Base's long position.| ProShares UltraShort vs. ProShares UltraShort 7 10 | ProShares UltraShort vs. ProShares UltraShort SP500 | ProShares UltraShort vs. iShares 20 Year | ProShares UltraShort vs. Direxion Daily 20 |
| DB Base vs. FT Vest Equity | DB Base vs. Zillow Group Class | DB Base vs. Northern Lights | DB Base vs. VanEck Vectors Moodys |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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