Correlation Between ProShares Ultra and SHP ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SHP ETF 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 SHP ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Semiconductors and SHP ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and SHP ETF 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 SHP ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SHP ETF.
Diversification Opportunities for ProShares Ultra and SHP ETF
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and SHP is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and SHP ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHP ETF 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 Semiconductors are associated (or correlated) with SHP ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHP ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SHP ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and SHP ETF
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to under-perform the SHP ETF. In addition to that, ProShares Ultra is 13.88 times more volatile than SHP ETF Trust. It trades about -0.03 of its total potential returns per unit of risk. SHP ETF Trust is currently generating about -0.07 per unit of volatility. If you would invest 4,728 in SHP ETF Trust on August 25, 2024 and sell it today you would lose (21.00) from holding SHP ETF Trust or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. SHP ETF Trust
Performance |
| Timeline |
| ProShares Ultra Semi |
| SHP ETF Trust |
ProShares Ultra and SHP ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and SHP ETF
The main advantage of trading using opposite ProShares Ultra and SHP ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, SHP ETF 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 SHP ETF will offset losses from the drop in SHP ETF's long position.| ProShares Ultra vs. ProShares Ultra Technology | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Basic | ProShares Ultra vs. ProShares Ultra Health |
| SHP ETF vs. Tidal Trust II | SHP ETF vs. Tidal Trust II | SHP ETF vs. First Trust Dorsey | SHP ETF 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |