Correlation Between ProShares UltraPro and GraniteShares
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and GraniteShares 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 GraniteShares 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 GraniteShares 1x Short, you can compare the effects of market volatilities on ProShares UltraPro and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and GraniteShares.
Diversification Opportunities for ProShares UltraPro and GraniteShares
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and GraniteShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and GraniteShares 1x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 1x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 1x Short has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and GraniteShares go up and down completely randomly.
Pair Corralation between ProShares UltraPro and GraniteShares
Given the investment horizon of 90 days ProShares UltraPro SP500 is expected to generate 0.34 times more return on investment than GraniteShares. However, ProShares UltraPro SP500 is 2.97 times less risky than GraniteShares. It trades about 0.11 of its potential returns per unit of risk. GraniteShares 1x Short is currently generating about -0.18 per unit of risk. If you would invest 4,248 in ProShares UltraPro SP500 on August 31, 2024 and sell it today you would earn a total of 5,457 from holding ProShares UltraPro SP500 or generate 128.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 16.84% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. GraniteShares 1x Short
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| GraniteShares 1x Short |
ProShares UltraPro and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and GraniteShares
The main advantage of trading using opposite ProShares UltraPro and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' 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 |
| GraniteShares vs. Tidal Trust II | GraniteShares vs. Tidal Trust II | GraniteShares vs. Direxion Daily META | GraniteShares vs. Direxion Daily META |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |