Correlation Between ProShares Ultra and Lattice Strategies
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Lattice Strategies 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 Lattice Strategies 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 Lattice Strategies Trust, you can compare the effects of market volatilities on ProShares Ultra and Lattice Strategies 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 Lattice Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Lattice Strategies.
Diversification Opportunities for ProShares Ultra and Lattice Strategies
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Lattice is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Lattice Strategies Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lattice Strategies Trust 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 Lattice Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lattice Strategies Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Lattice Strategies go up and down completely randomly.
Pair Corralation between ProShares Ultra and Lattice Strategies
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Lattice Strategies. In addition to that, ProShares Ultra is 1.17 times more volatile than Lattice Strategies Trust. It trades about -0.05 of its total potential returns per unit of risk. Lattice Strategies Trust is currently generating about 0.16 per unit of volatility. If you would invest 5,050 in Lattice Strategies Trust on September 1, 2024 and sell it today you would earn a total of 820.00 from holding Lattice Strategies Trust or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
ProShares Ultra Euro vs. Lattice Strategies Trust
Performance |
| Timeline |
| ProShares Ultra Euro |
| Lattice Strategies Trust |
ProShares Ultra and Lattice Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Lattice Strategies
The main advantage of trading using opposite ProShares Ultra and Lattice Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Lattice Strategies 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 Lattice Strategies will offset losses from the drop in Lattice Strategies' 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 |
| Lattice Strategies vs. FT Vest Equity | Lattice Strategies vs. Northern Lights | Lattice Strategies vs. Dimensional International High | Lattice Strategies vs. Matthews China Discovery |
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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