Correlation Between ProShares Ultra and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Spinnaker 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 Spinnaker 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 Spinnaker ETF Series, you can compare the effects of market volatilities on ProShares Ultra and Spinnaker 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Spinnaker ETF.
Diversification Opportunities for ProShares Ultra and Spinnaker ETF
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Spinnaker is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Spinnaker ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and Spinnaker ETF
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 22.49 times more return on investment than Spinnaker ETF. However, ProShares Ultra is 22.49 times more volatile than Spinnaker ETF Series. It trades about 0.03 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about -0.03 per unit of risk. If you would invest 6,116 in ProShares Ultra Semiconductors on August 28, 2024 and sell it today you would earn a total of 145.00 from holding ProShares Ultra Semiconductors or generate 2.37% 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. Spinnaker ETF Series
Performance |
| Timeline |
| ProShares Ultra Semi |
| Spinnaker ETF Series |
ProShares Ultra and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Spinnaker ETF
The main advantage of trading using opposite ProShares Ultra and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Spinnaker 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| ProShares Ultra vs. Direxion Daily SP | ProShares Ultra vs. Direxion Daily Semiconductor | ProShares Ultra vs. Direxion Daily Semiconductor |
| Spinnaker ETF vs. iShares MSCI EAFE | Spinnaker ETF vs. iShares iBoxx Investment | Spinnaker ETF vs. iShares TIPS Bond | Spinnaker ETF vs. iShares 1 3 Year |
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..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |