Correlation Between ProShares UltraShort and UBS
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and UBS 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 UBS 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 UBS, you can compare the effects of market volatilities on ProShares UltraShort and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and UBS.
Diversification Opportunities for ProShares UltraShort and UBS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort 20 and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and UBS go up and down completely randomly.
Pair Corralation between ProShares UltraShort and UBS
If you would invest (100.00) in UBS on November 28, 2024 and sell it today you would earn a total of 100.00 from holding UBS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares UltraShort 20 vs. UBS
Performance |
| Timeline |
| ProShares UltraShort |
| UBS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares UltraShort and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and UBS
The main advantage of trading using opposite ProShares UltraShort and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS'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 |
| UBS vs. ProShares MSCI EAFE | UBS vs. ProShares MSCI Emerging | UBS vs. ProShares SP MidCap | UBS vs. ProShares Russell 2000 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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