Correlation Between ProShares Ultra and ETF Opportunities
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and ETF Opportunities 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 ETF Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Yen and ETF Opportunities Trust, you can compare the effects of market volatilities on ProShares Ultra and ETF Opportunities 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 ETF Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and ETF Opportunities.
Diversification Opportunities for ProShares Ultra and ETF Opportunities
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ETF is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and ETF Opportunities Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Opportunities 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 Yen are associated (or correlated) with ETF Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Opportunities Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and ETF Opportunities go up and down completely randomly.
Pair Corralation between ProShares Ultra and ETF Opportunities
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the ETF Opportunities. In addition to that, ProShares Ultra is 1.8 times more volatile than ETF Opportunities Trust. It trades about -0.01 of its total potential returns per unit of risk. ETF Opportunities Trust is currently generating about 0.11 per unit of volatility. If you would invest 3,909 in ETF Opportunities Trust on September 1, 2024 and sell it today you would earn a total of 684.00 from holding ETF Opportunities Trust or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
ProShares Ultra Yen vs. ETF Opportunities Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| ETF Opportunities Trust |
ProShares Ultra and ETF Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and ETF Opportunities
The main advantage of trading using opposite ProShares Ultra and ETF Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, ETF Opportunities 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 ETF Opportunities will offset losses from the drop in ETF Opportunities' long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| ETF Opportunities vs. Vanguard Total Stock | ETF Opportunities vs. SPDR SP 500 | ETF Opportunities vs. iShares Core SP | ETF Opportunities vs. Vanguard Dividend Appreciation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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