Correlation Between ProShares Ultra and Advisor Managed
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Advisor Managed 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 Advisor Managed 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 Advisor Managed Portfolios, you can compare the effects of market volatilities on ProShares Ultra and Advisor Managed 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 Advisor Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Advisor Managed.
Diversification Opportunities for ProShares Ultra and Advisor Managed
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Advisor is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Advisor Managed Portfolios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisor Managed Port 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 Advisor Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisor Managed Port has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Advisor Managed go up and down completely randomly.
Pair Corralation between ProShares Ultra and Advisor Managed
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Advisor Managed. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra Euro is 1.75 times less risky than Advisor Managed. The etf trades about -0.05 of its potential returns per unit of risk. The Advisor Managed Portfolios is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,535 in Advisor Managed Portfolios on September 1, 2024 and sell it today you would earn a total of 481.00 from holding Advisor Managed Portfolios or generate 18.97% 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. Advisor Managed Portfolios
Performance |
| Timeline |
| ProShares Ultra Euro |
| Advisor Managed Port |
ProShares Ultra and Advisor Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Advisor Managed
The main advantage of trading using opposite ProShares Ultra and Advisor Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Advisor Managed 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 Advisor Managed will offset losses from the drop in Advisor Managed'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 |
| Advisor Managed vs. Vanguard Total Stock | Advisor Managed vs. SPDR SP 500 | Advisor Managed vs. iShares Core SP | Advisor Managed vs. Vanguard Dividend Appreciation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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