Correlation Between ProShares UltraPro and Themes Silver
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and Themes Silver 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 UltraPro and Themes Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro SP500 and Themes Silver Miners, you can compare the effects of market volatilities on ProShares UltraPro and Themes Silver 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 UltraPro with a short position of Themes Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and Themes Silver.
Diversification Opportunities for ProShares UltraPro and Themes Silver
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and Themes is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and Themes Silver Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Silver Miners and ProShares UltraPro 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 UltraPro SP500 are associated (or correlated) with Themes Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Silver Miners has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and Themes Silver go up and down completely randomly.
Pair Corralation between ProShares UltraPro and Themes Silver
Given the investment horizon of 90 days ProShares UltraPro SP500 is expected to generate 1.28 times more return on investment than Themes Silver. However, ProShares UltraPro is 1.28 times more volatile than Themes Silver Miners. It trades about 0.13 of its potential returns per unit of risk. Themes Silver Miners is currently generating about -0.29 per unit of risk. If you would invest 8,717 in ProShares UltraPro SP500 on August 24, 2024 and sell it today you would earn a total of 600.00 from holding ProShares UltraPro SP500 or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. Themes Silver Miners
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| Themes Silver Miners |
ProShares UltraPro and Themes Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and Themes Silver
The main advantage of trading using opposite ProShares UltraPro and Themes Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, Themes Silver 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 Themes Silver will offset losses from the drop in Themes Silver's long position.| ProShares UltraPro vs. ProShares UltraPro Dow30 | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro QQQ | ProShares UltraPro vs. Direxion Daily Small |
| Themes Silver vs. First Trust Exchange Traded | Themes Silver vs. Ultimus Managers Trust | Themes Silver vs. Horizon Kinetics Medical | Themes Silver vs. Harbor Health Care |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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