Correlation Between ProShares Ultra and Mairs Power
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Mairs Power 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 Mairs Power 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 Mairs Power Minnesota, you can compare the effects of market volatilities on ProShares Ultra and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Mairs Power.
Diversification Opportunities for ProShares Ultra and Mairs Power
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Mairs is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Mairs Power Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Minnesota 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Minnesota has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Mairs Power go up and down completely randomly.
Pair Corralation between ProShares Ultra and Mairs Power
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 13.91 times more return on investment than Mairs Power. However, ProShares Ultra is 13.91 times more volatile than Mairs Power Minnesota. It trades about 0.05 of its potential returns per unit of risk. Mairs Power Minnesota is currently generating about -0.05 per unit of risk. If you would invest 5,996 in ProShares Ultra Semiconductors on August 29, 2024 and sell it today you would earn a total of 265.00 from holding ProShares Ultra Semiconductors or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. Mairs Power Minnesota
Performance |
| Timeline |
| ProShares Ultra Semi |
| Mairs Power Minnesota |
ProShares Ultra and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Mairs Power
The main advantage of trading using opposite ProShares Ultra and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power's long position.| ProShares Ultra vs. ABIVAX Socit Anonyme | ProShares Ultra vs. Morningstar Unconstrained Allocation | ProShares Ultra vs. SPACE | ProShares Ultra vs. Knife River |
| Mairs Power vs. BlackRock Intermediate Muni | Mairs Power vs. IQ MacKay Municipal | Mairs Power vs. Overlay Shares Municipal | Mairs Power vs. IQ MacKay Municipal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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