Correlation Between ProShares Ultra and AB Active
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and AB Active 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 AB Active 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 AB Active ETFs,, you can compare the effects of market volatilities on ProShares Ultra and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and AB Active.
Diversification Opportunities for ProShares Ultra and AB Active
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and SDFI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and AB Active go up and down completely randomly.
Pair Corralation between ProShares Ultra and AB Active
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 13.69 times more return on investment than AB Active. However, ProShares Ultra is 13.69 times more volatile than AB Active ETFs,. It trades about 0.04 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.12 per unit of risk. If you would invest 6,191 in ProShares Ultra Semiconductors on September 1, 2024 and sell it today you would earn a total of 109.00 from holding ProShares Ultra Semiconductors or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ProShares Ultra Semiconductors vs. AB Active ETFs,
Performance |
| Timeline |
| ProShares Ultra Semi |
| AB Active ETFs, |
ProShares Ultra and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and AB Active
The main advantage of trading using opposite ProShares Ultra and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active'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 |
| AB Active vs. Valued Advisers Trust | AB Active vs. Columbia Diversified Fixed | AB Active vs. Principal Exchange Traded Funds | AB Active vs. Doubleline Etf Trust |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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