Correlation Between ProShares Ultra and Anfield Equity
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Anfield Equity 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 Anfield Equity 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 Anfield Equity Sector, you can compare the effects of market volatilities on ProShares Ultra and Anfield Equity 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 Anfield Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Anfield Equity.
Diversification Opportunities for ProShares Ultra and Anfield Equity
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Anfield is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Anfield Equity Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Equity Sector 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 Anfield Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Equity Sector has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Anfield Equity go up and down completely randomly.
Pair Corralation between ProShares Ultra and Anfield Equity
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Anfield Equity. In addition to that, ProShares Ultra is 1.67 times more volatile than Anfield Equity Sector. It trades about -0.15 of its total potential returns per unit of risk. Anfield Equity Sector is currently generating about 0.11 per unit of volatility. If you would invest 1,657 in Anfield Equity Sector on August 28, 2024 and sell it today you would earn a total of 106.00 from holding Anfield Equity Sector or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Anfield Equity Sector
Performance |
| Timeline |
| ProShares Ultra Yen |
| Anfield Equity Sector |
ProShares Ultra and Anfield Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Anfield Equity
The main advantage of trading using opposite ProShares Ultra and Anfield Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Anfield Equity 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 Anfield Equity will offset losses from the drop in Anfield Equity's long position.| ProShares Ultra vs. ProShares Ultra Euro | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. ProShares Ultra Telecommunications | ProShares Ultra vs. ProShares Ultra Consumer |
| Anfield Equity vs. Morningstar Unconstrained Allocation | Anfield Equity vs. High Yield Municipal Fund | Anfield Equity vs. Via Renewables | Anfield Equity vs. Knife River |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |