Correlation Between ProShares Ultra and Themes Natural
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Themes Natural 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 Themes Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Euro and Themes Natural Monopoly, you can compare the effects of market volatilities on ProShares Ultra and Themes Natural 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 Themes Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Themes Natural.
Diversification Opportunities for ProShares Ultra and Themes Natural
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and Themes is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Themes Natural Monopoly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Natural Monopoly 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 Euro are associated (or correlated) with Themes Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Natural Monopoly has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Themes Natural go up and down completely randomly.
Pair Corralation between ProShares Ultra and Themes Natural
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Themes Natural. In addition to that, ProShares Ultra is 2.11 times more volatile than Themes Natural Monopoly. It trades about -0.15 of its total potential returns per unit of risk. Themes Natural Monopoly is currently generating about 0.19 per unit of volatility. If you would invest 2,931 in Themes Natural Monopoly on August 30, 2024 and sell it today you would earn a total of 84.00 from holding Themes Natural Monopoly or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Euro vs. Themes Natural Monopoly
Performance |
| Timeline |
| ProShares Ultra Euro |
| Themes Natural Monopoly |
ProShares Ultra and Themes Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Themes Natural
The main advantage of trading using opposite ProShares Ultra and Themes Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Themes Natural 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 Themes Natural will offset losses from the drop in Themes Natural's long position.| ProShares Ultra vs. ProShares Ultra Yen | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. ProShares UltraShort Euro | ProShares Ultra vs. ProShares Ultra Consumer |
| Themes Natural vs. JPMorgan BetaBuilders International | Themes Natural vs. JPMorgan Core Plus | Themes Natural vs. JPMorgan BetaBuilders Canada | Themes Natural vs. JPMorgan Emerging Markets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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