Correlation Between ProShares Ultra and Listed Funds
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Listed Funds 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 Listed Funds 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 Listed Funds Trust, you can compare the effects of market volatilities on ProShares Ultra and Listed Funds 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Listed Funds.
Diversification Opportunities for ProShares Ultra and Listed Funds
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and Listed is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds 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 Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Listed Funds go up and down completely randomly.
Pair Corralation between ProShares Ultra and Listed Funds
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 8.99 times more return on investment than Listed Funds. However, ProShares Ultra is 8.99 times more volatile than Listed Funds Trust. It trades about 0.03 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.17 per unit of risk. If you would invest 6,141 in ProShares Ultra Semiconductors on August 31, 2024 and sell it today you would earn a total of 159.00 from holding ProShares Ultra Semiconductors or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. Listed Funds Trust
Performance |
| Timeline |
| ProShares Ultra Semi |
| Listed Funds Trust |
ProShares Ultra and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Listed Funds
The main advantage of trading using opposite ProShares Ultra and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' 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 |
| Listed Funds vs. iShares Core SP | Listed Funds vs. iShares Core MSCI | Listed Funds vs. iShares Broad USD | Listed Funds vs. iShares Core SP |
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.
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