Correlation Between ProShares Ultra and Series Portfolios
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Series Portfolios 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 Series Portfolios 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 Series Portfolios Trust, you can compare the effects of market volatilities on ProShares Ultra and Series Portfolios 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 Series Portfolios. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Series Portfolios.
Diversification Opportunities for ProShares Ultra and Series Portfolios
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Series is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Series Portfolios Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Series Portfolios 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 Series Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Series Portfolios Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Series Portfolios go up and down completely randomly.
Pair Corralation between ProShares Ultra and Series Portfolios
Considering the 90-day investment horizon ProShares Ultra is expected to generate 3.9 times less return on investment than Series Portfolios. In addition to that, ProShares Ultra is 1.29 times more volatile than Series Portfolios Trust. It trades about 0.03 of its total potential returns per unit of risk. Series Portfolios Trust is currently generating about 0.15 per unit of volatility. If you would invest 3,055 in Series Portfolios Trust on September 1, 2024 and sell it today you would earn a total of 743.00 from holding Series Portfolios Trust or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Series Portfolios Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Series Portfolios Trust |
ProShares Ultra and Series Portfolios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Series Portfolios
The main advantage of trading using opposite ProShares Ultra and Series Portfolios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Series Portfolios 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 Series Portfolios will offset losses from the drop in Series Portfolios' long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Series Portfolios vs. Vanguard Total Stock | Series Portfolios vs. SPDR SP 500 | Series Portfolios vs. iShares Core SP | Series Portfolios 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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