Correlation Between ProShares Ultra and KraneShares SSE
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and KraneShares SSE 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 KraneShares SSE 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 KraneShares SSE STAR, you can compare the effects of market volatilities on ProShares Ultra and KraneShares SSE 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 KraneShares SSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and KraneShares SSE.
Diversification Opportunities for ProShares Ultra and KraneShares SSE
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProShares and KraneShares is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and KraneShares SSE STAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares SSE STAR 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 KraneShares SSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares SSE STAR has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and KraneShares SSE go up and down completely randomly.
Pair Corralation between ProShares Ultra and KraneShares SSE
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the KraneShares SSE. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra Euro is 1.82 times less risky than KraneShares SSE. The etf trades about -0.01 of its potential returns per unit of risk. The KraneShares SSE STAR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,347 in KraneShares SSE STAR on November 30, 2024 and sell it today you would earn a total of 95.00 from holding KraneShares SSE STAR or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Euro vs. KraneShares SSE STAR
Performance |
| Timeline |
| ProShares Ultra Euro |
| KraneShares SSE STAR |
ProShares Ultra and KraneShares SSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and KraneShares SSE
The main advantage of trading using opposite ProShares Ultra and KraneShares SSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, KraneShares SSE 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 KraneShares SSE will offset losses from the drop in KraneShares SSE'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 |
| KraneShares SSE vs. KraneShares MSCI All | KraneShares SSE vs. KraneShares Bosera MSCI | KraneShares SSE vs. KraneShares MSCI China |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |