Correlation Between ProShares Ultra and Zacks Trust
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Zacks Trust 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 Zacks Trust 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 Zacks Trust , you can compare the effects of market volatilities on ProShares Ultra and Zacks Trust 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 Zacks Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Zacks Trust.
Diversification Opportunities for ProShares Ultra and Zacks Trust
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Zacks is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Euro and Zacks Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zacks Trust 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 Zacks Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zacks Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Zacks Trust go up and down completely randomly.
Pair Corralation between ProShares Ultra and Zacks Trust
Considering the 90-day investment horizon ProShares Ultra Euro is expected to under-perform the Zacks Trust. In addition to that, ProShares Ultra is 1.41 times more volatile than Zacks Trust . It trades about -0.05 of its total potential returns per unit of risk. Zacks Trust is currently generating about 0.17 per unit of volatility. If you would invest 2,809 in Zacks Trust on September 1, 2024 and sell it today you would earn a total of 416.00 from holding Zacks Trust or generate 14.81% 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. Zacks Trust
Performance |
| Timeline |
| ProShares Ultra Euro |
| Zacks Trust |
ProShares Ultra and Zacks Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Zacks Trust
The main advantage of trading using opposite ProShares Ultra and Zacks Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Zacks Trust 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 Zacks Trust will offset losses from the drop in Zacks Trust'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 |
| Zacks Trust vs. First Trust Expanded | Zacks Trust vs. First Trust Exchange Traded | Zacks Trust vs. First Trust Exchange Traded | Zacks Trust vs. Innovator Equity Accelerated |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| 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 | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |