Correlation Between ProShares Ultra and Putnam ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Putnam 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 Putnam 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 Putnam ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and Putnam 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 Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Putnam ETF.
Diversification Opportunities for ProShares Ultra and Putnam ETF
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Putnam is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Putnam ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam ETF Trust 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 Putnam ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Putnam ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and Putnam ETF
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 11.95 times more return on investment than Putnam ETF. However, ProShares Ultra is 11.95 times more volatile than Putnam ETF Trust. It trades about 0.09 of its potential returns per unit of risk. Putnam ETF Trust is currently generating about 0.05 per unit of risk. If you would invest 2,202 in ProShares Ultra Semiconductors on August 26, 2024 and sell it today you would earn a total of 4,328 from holding ProShares Ultra Semiconductors or generate 196.55% 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. Putnam ETF Trust
Performance |
| Timeline |
| ProShares Ultra Semi |
| Putnam ETF Trust |
ProShares Ultra and Putnam ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Putnam ETF
The main advantage of trading using opposite ProShares Ultra and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Putnam 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 Putnam ETF will offset losses from the drop in Putnam ETF'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 |
| Putnam ETF vs. iShares MSCI EAFE | Putnam ETF vs. iShares iBoxx Investment | Putnam ETF vs. iShares TIPS Bond | Putnam 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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