Correlation Between ProShares Ultra and Discipline Fund
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Discipline Fund 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 Discipline Fund 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 Discipline Fund ETF, you can compare the effects of market volatilities on ProShares Ultra and Discipline Fund 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 Discipline Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Discipline Fund.
Diversification Opportunities for ProShares Ultra and Discipline Fund
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Discipline is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Discipline Fund ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discipline Fund ETF 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 Discipline Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discipline Fund ETF has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Discipline Fund go up and down completely randomly.
Pair Corralation between ProShares Ultra and Discipline Fund
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 11.7 times more return on investment than Discipline Fund. However, ProShares Ultra is 11.7 times more volatile than Discipline Fund ETF. It trades about 0.09 of its potential returns per unit of risk. Discipline Fund ETF is currently generating about 0.06 per unit of risk. If you would invest 2,202 in ProShares Ultra Semiconductors on September 12, 2024 and sell it today you would earn a total of 3,908 from holding ProShares Ultra Semiconductors or generate 177.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. Discipline Fund ETF
Performance |
| Timeline |
| ProShares Ultra Semi |
| Discipline Fund ETF |
ProShares Ultra and Discipline Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Discipline Fund
The main advantage of trading using opposite ProShares Ultra and Discipline Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Discipline Fund 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 Discipline Fund will offset losses from the drop in Discipline Fund'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 |
| Discipline Fund vs. ATAC Rotation ETF | Discipline Fund vs. Amplify BlackSwan ISWN | Discipline Fund vs. Tidal ETF Trust | Discipline Fund vs. Aptus Defined Risk |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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