Correlation Between ProShares Ultra and Cboe Vest
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Cboe Vest 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 Cboe Vest 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 Cboe Vest 10, you can compare the effects of market volatilities on ProShares Ultra and Cboe Vest 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 Cboe Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Cboe Vest.
Diversification Opportunities for ProShares Ultra and Cboe Vest
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Cboe is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Cboe Vest 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe Vest 10 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 Cboe Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe Vest 10 has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Cboe Vest go up and down completely randomly.
Pair Corralation between ProShares Ultra and Cboe Vest
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Cboe Vest. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra Euro is 1.06 times less risky than Cboe Vest. The etf trades about -0.04 of its potential returns per unit of risk. The Cboe Vest 10 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,229 in Cboe Vest 10 on November 9, 2024 and sell it today you would earn a total of 200.00 from holding Cboe Vest 10 or generate 8.97% 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. Cboe Vest 10
Performance |
| Timeline |
| ProShares Ultra Euro |
| Cboe Vest 10 |
ProShares Ultra and Cboe Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Cboe Vest
The main advantage of trading using opposite ProShares Ultra and Cboe Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Cboe Vest 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 Cboe Vest will offset losses from the drop in Cboe Vest'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 |
| Cboe Vest vs. Freedom Day Dividend | Cboe Vest vs. Franklin Templeton ETF | Cboe Vest vs. iShares MSCI China | Cboe Vest vs. Tidal Trust II |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |