Correlation Between Harbor Long and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Harbor Long and ProShares Ultra 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 Harbor Long and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Long Term Growers and ProShares Ultra Yen, you can compare the effects of market volatilities on Harbor Long and ProShares Ultra 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 Harbor Long with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Long and ProShares Ultra.
Diversification Opportunities for Harbor Long and ProShares Ultra
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harbor and ProShares is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Long Term Growers and ProShares Ultra Yen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Yen and Harbor Long 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 Harbor Long Term Growers are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Yen has no effect on the direction of Harbor Long i.e., Harbor Long and ProShares Ultra go up and down completely randomly.
Pair Corralation between Harbor Long and ProShares Ultra
Given the investment horizon of 90 days Harbor Long Term Growers is expected to generate 0.65 times more return on investment than ProShares Ultra. However, Harbor Long Term Growers is 1.53 times less risky than ProShares Ultra. It trades about 0.16 of its potential returns per unit of risk. ProShares Ultra Yen is currently generating about -0.08 per unit of risk. If you would invest 2,444 in Harbor Long Term Growers on August 31, 2024 and sell it today you would earn a total of 248.00 from holding Harbor Long Term Growers or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Long Term Growers vs. ProShares Ultra Yen
Performance |
| Timeline |
| Harbor Long Term |
| ProShares Ultra Yen |
Harbor Long and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Long and ProShares Ultra
The main advantage of trading using opposite Harbor Long and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Long position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| Harbor Long vs. Weis Markets | Harbor Long vs. Village Super Market | Harbor Long vs. Ingles Markets Incorporated | Harbor Long vs. SpartanNash Co |
| ProShares Ultra vs. ProShares Ultra Euro | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. ProShares Ultra Telecommunications | ProShares Ultra vs. ProShares Ultra Consumer |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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