Correlation Between ProShares UltraShort and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Spinnaker ETF 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 Spinnaker ETF 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 Spinnaker ETF Series, you can compare the effects of market volatilities on ProShares UltraShort and Spinnaker ETF 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Spinnaker ETF.
Diversification Opportunities for ProShares UltraShort and Spinnaker ETF
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Spinnaker is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort 20 and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Spinnaker ETF go up and down completely randomly.
Pair Corralation between ProShares UltraShort and Spinnaker ETF
Considering the 90-day investment horizon ProShares UltraShort 20 is expected to under-perform the Spinnaker ETF. In addition to that, ProShares UltraShort is 9.14 times more volatile than Spinnaker ETF Series. It trades about -0.06 of its total potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.04 per unit of volatility. If you would invest 1,021 in Spinnaker ETF Series on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Spinnaker ETF Series or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ProShares UltraShort 20 vs. Spinnaker ETF Series
Performance |
| Timeline |
| ProShares UltraShort |
| Spinnaker ETF Series |
ProShares UltraShort and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and Spinnaker ETF
The main advantage of trading using opposite ProShares UltraShort and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| ProShares UltraShort vs. Direxion Daily 20 | ProShares UltraShort vs. ProShares Short 20 | ProShares UltraShort vs. ProShares UltraShort 7 10 | ProShares UltraShort vs. Direxion Daily 7 10 |
| Spinnaker ETF vs. Schwab International Equity | Spinnaker ETF vs. Schwab Emerging Markets | Spinnaker ETF vs. Schwab Short Term Treasury | Spinnaker ETF vs. Schwab TIPS ETF |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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