Correlation Between ProShares Ultra and IShares Fixed
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and IShares Fixed 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 IShares Fixed 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 iShares Fixed Income, you can compare the effects of market volatilities on ProShares Ultra and IShares Fixed 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 IShares Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and IShares Fixed.
Diversification Opportunities for ProShares Ultra and IShares Fixed
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and IShares is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and iShares Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fixed Income 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 IShares Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fixed Income has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and IShares Fixed go up and down completely randomly.
Pair Corralation between ProShares Ultra and IShares Fixed
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 12.86 times more return on investment than IShares Fixed. However, ProShares Ultra is 12.86 times more volatile than iShares Fixed Income. It trades about 0.11 of its potential returns per unit of risk. iShares Fixed Income is currently generating about 0.08 per unit of risk. If you would invest 846.00 in ProShares Ultra Semiconductors on September 12, 2024 and sell it today you would earn a total of 5,264 from holding ProShares Ultra Semiconductors or generate 622.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. iShares Fixed Income
Performance |
| Timeline |
| ProShares Ultra Semi |
| iShares Fixed Income |
ProShares Ultra and IShares Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and IShares Fixed
The main advantage of trading using opposite ProShares Ultra and IShares Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, IShares Fixed 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 IShares Fixed will offset losses from the drop in IShares Fixed'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 |
| IShares Fixed vs. American Century STOXX | IShares Fixed vs. Franklin Liberty Investment | IShares Fixed vs. Aquagold International | IShares Fixed vs. Morningstar Unconstrained Allocation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |