Correlation Between ProShares Ultra and SPKY
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SPKY 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 SPKY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Consumer and SPKY, you can compare the effects of market volatilities on ProShares Ultra and SPKY 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 SPKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SPKY.
Diversification Opportunities for ProShares Ultra and SPKY
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and SPKY is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Consumer and SPKY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPKY 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 Consumer are associated (or correlated) with SPKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPKY has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SPKY go up and down completely randomly.
Pair Corralation between ProShares Ultra and SPKY
If you would invest 4,947 in ProShares Ultra Consumer on September 14, 2024 and sell it today you would earn a total of 738.00 from holding ProShares Ultra Consumer or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ProShares Ultra Consumer vs. SPKY
Performance |
| Timeline |
| ProShares Ultra Consumer |
| SPKY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and SPKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and SPKY
The main advantage of trading using opposite ProShares Ultra and SPKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, SPKY 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 SPKY will offset losses from the drop in SPKY's long position.| ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Utilities | ProShares Ultra vs. ProShares Ultra Health |
| SPKY vs. ProShares UltraShort Yen | SPKY vs. ProShares Ultra Telecommunications | SPKY vs. ProShares Ultra Consumer | SPKY vs. ProShares Ultra Consumer |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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