Correlation Between ProShares UltraPro and ProShares
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and ProShares 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 ProShares 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 ProShares, you can compare the effects of market volatilities on ProShares UltraPro and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and ProShares.
Diversification Opportunities for ProShares UltraPro and ProShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and ProShares go up and down completely randomly.
Pair Corralation between ProShares UltraPro and ProShares
If you would invest 4,940 in ProShares UltraPro SP500 on September 12, 2024 and sell it today you would earn a total of 4,754 from holding ProShares UltraPro SP500 or generate 96.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. ProShares
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraPro and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and ProShares
The main advantage of trading using opposite ProShares UltraPro and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| ProShares UltraPro vs. ProShares Ultra SP500 | ProShares UltraPro vs. Direxion Daily SP500 | ProShares UltraPro vs. ProShares Ultra QQQ | ProShares UltraPro vs. Direxion Daily Technology |
| ProShares vs. ProShares Ultra SP500 | ProShares vs. Direxion Daily SP500 | ProShares vs. ProShares Ultra QQQ | ProShares vs. ProShares UltraPro SP500 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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