Correlation Between ProShares Ultra and NKEQ
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and NKEQ 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 NKEQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra MSCI and NKEQ, you can compare the effects of market volatilities on ProShares Ultra and NKEQ 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 NKEQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and NKEQ.
Diversification Opportunities for ProShares Ultra and NKEQ
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and NKEQ is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra MSCI and NKEQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKEQ 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 MSCI are associated (or correlated) with NKEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKEQ has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and NKEQ go up and down completely randomly.
Pair Corralation between ProShares Ultra and NKEQ
If you would invest 2,895 in NKEQ on September 12, 2024 and sell it today you would earn a total of 0.00 from holding NKEQ or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
ProShares Ultra MSCI vs. NKEQ
Performance |
| Timeline |
| ProShares Ultra MSCI |
| NKEQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and NKEQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and NKEQ
The main advantage of trading using opposite ProShares Ultra and NKEQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, NKEQ 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 NKEQ will offset losses from the drop in NKEQ's long position.| ProShares Ultra vs. Freedom Day Dividend | ProShares Ultra vs. Franklin Templeton ETF | ProShares Ultra vs. iShares MSCI China | ProShares Ultra vs. Tidal Trust II |
| NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. ProShares UltraShort Euro | NKEQ vs. ProShares UltraShort MSCI |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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