Correlation Between ProShares Ultra and VanEck Video
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and VanEck Video 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 VanEck Video 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 VanEck Video Gaming, you can compare the effects of market volatilities on ProShares Ultra and VanEck Video 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 VanEck Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and VanEck Video.
Diversification Opportunities for ProShares Ultra and VanEck Video
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and VanEck is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and VanEck Video Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Video Gaming 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 VanEck Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Video Gaming has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and VanEck Video go up and down completely randomly.
Pair Corralation between ProShares Ultra and VanEck Video
Considering the 90-day investment horizon ProShares Ultra is expected to generate 16.05 times less return on investment than VanEck Video. In addition to that, ProShares Ultra is 5.99 times more volatile than VanEck Video Gaming. It trades about 0.01 of its total potential returns per unit of risk. VanEck Video Gaming is currently generating about 0.5 per unit of volatility. If you would invest 8,395 in VanEck Video Gaming on November 18, 2024 and sell it today you would earn a total of 1,129 from holding VanEck Video Gaming or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. VanEck Video Gaming
Performance |
| Timeline |
| ProShares Ultra Semi |
| VanEck Video Gaming |
ProShares Ultra and VanEck Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and VanEck Video
The main advantage of trading using opposite ProShares Ultra and VanEck Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, VanEck Video 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 VanEck Video will offset losses from the drop in VanEck Video'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 |
| VanEck Video vs. Roundhill Video Games | VanEck Video vs. Global X Video | VanEck Video vs. Amplify ETF Trust | VanEck Video vs. Global X Cloud |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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