Correlation Between ProShares Ultra and Impact Shares
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Impact Shares 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 Impact Shares 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 Impact Shares NAACP, you can compare the effects of market volatilities on ProShares Ultra and Impact Shares 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 Impact Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Impact Shares.
Diversification Opportunities for ProShares Ultra and Impact Shares
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Impact is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Impact Shares NAACP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Shares NAACP 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 Impact Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Shares NAACP has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Impact Shares go up and down completely randomly.
Pair Corralation between ProShares Ultra and Impact Shares
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Impact Shares. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra Euro is 1.02 times less risky than Impact Shares. The etf trades about -0.01 of its potential returns per unit of risk. The Impact Shares NAACP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,563 in Impact Shares NAACP on September 1, 2024 and sell it today you would earn a total of 725.00 from holding Impact Shares NAACP or generate 20.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Euro vs. Impact Shares NAACP
Performance |
| Timeline |
| ProShares Ultra Euro |
| Impact Shares NAACP |
ProShares Ultra and Impact Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Impact Shares
The main advantage of trading using opposite ProShares Ultra and Impact Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Impact Shares 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 Impact Shares will offset losses from the drop in Impact Shares' 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 |
| Impact Shares vs. Impact Shares YWCA | Impact Shares vs. SPDR SSGA Gender | Impact Shares vs. Global X Conscious | Impact Shares vs. PIMCO RAFI Dynamic |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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