Correlation Between ProShares Ultra and Invesco Bloomberg
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Invesco Bloomberg 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 Invesco Bloomberg 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 Invesco Bloomberg Pricing, you can compare the effects of market volatilities on ProShares Ultra and Invesco Bloomberg 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 Invesco Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Invesco Bloomberg.
Diversification Opportunities for ProShares Ultra and Invesco Bloomberg
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Invesco is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Invesco Bloomberg Pricing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Bloomberg Pricing 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 Invesco Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Bloomberg Pricing has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Invesco Bloomberg go up and down completely randomly.
Pair Corralation between ProShares Ultra and Invesco Bloomberg
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Invesco Bloomberg. In addition to that, ProShares Ultra is 1.22 times more volatile than Invesco Bloomberg Pricing. It trades about -0.05 of its total potential returns per unit of risk. Invesco Bloomberg Pricing is currently generating about 0.14 per unit of volatility. If you would invest 7,696 in Invesco Bloomberg Pricing on September 1, 2024 and sell it today you would earn a total of 1,021 from holding Invesco Bloomberg Pricing or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
ProShares Ultra Euro vs. Invesco Bloomberg Pricing
Performance |
| Timeline |
| ProShares Ultra Euro |
| Invesco Bloomberg Pricing |
ProShares Ultra and Invesco Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Invesco Bloomberg
The main advantage of trading using opposite ProShares Ultra and Invesco Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Invesco Bloomberg 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 Invesco Bloomberg will offset losses from the drop in Invesco Bloomberg'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 |
| Invesco Bloomberg vs. Invesco Actively Managed | Invesco Bloomberg vs. iShares Trust | Invesco Bloomberg vs. Xtrackers MSCI Emerging | Invesco Bloomberg vs. iShares MSCI Emerging |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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