Correlation Between ProShares Ultra and Acruence Active
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Acruence Active 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 Acruence Active 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 Acruence Active Hedge, you can compare the effects of market volatilities on ProShares Ultra and Acruence Active 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 Acruence Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Acruence Active.
Diversification Opportunities for ProShares Ultra and Acruence Active
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Acruence is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Acruence Active Hedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acruence Active Hedge 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 Acruence Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acruence Active Hedge has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Acruence Active go up and down completely randomly.
Pair Corralation between ProShares Ultra and Acruence Active
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Acruence Active. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra Euro is 1.81 times less risky than Acruence Active. The etf trades about -0.07 of its potential returns per unit of risk. The Acruence Active Hedge is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,023 in Acruence Active Hedge on August 26, 2024 and sell it today you would earn a total of 364.00 from holding Acruence Active Hedge or generate 17.99% 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. Acruence Active Hedge
Performance |
| Timeline |
| ProShares Ultra Euro |
| Acruence Active Hedge |
ProShares Ultra and Acruence Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Acruence Active
The main advantage of trading using opposite ProShares Ultra and Acruence Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Acruence Active 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 Acruence Active will offset losses from the drop in Acruence Active's long position.| ProShares Ultra vs. ProShares VIX Short Term | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. iPath Series B |
| Acruence Active vs. ZEGA Buy and | Acruence Active vs. Innovator Equity Accelerated | Acruence Active vs. Innovator SP 500 | Acruence Active vs. Innovator SP 500 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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