Correlation Between ProShares Ultra and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Macquarie ETF 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 Macquarie ETF 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 Macquarie ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and Macquarie ETF 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Macquarie ETF.
Diversification Opportunities for ProShares Ultra and Macquarie ETF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Macquarie is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Macquarie ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and Macquarie ETF
Considering the 90-day investment horizon ProShares Ultra Yen is expected to generate 1.93 times more return on investment than Macquarie ETF. However, ProShares Ultra is 1.93 times more volatile than Macquarie ETF Trust. It trades about -0.08 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about -0.21 per unit of risk. If you would invest 2,185 in ProShares Ultra Yen on August 24, 2024 and sell it today you would lose (69.00) from holding ProShares Ultra Yen or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Macquarie ETF Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Macquarie ETF Trust |
ProShares Ultra and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Macquarie ETF
The main advantage of trading using opposite ProShares Ultra and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF'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 |
| Macquarie ETF vs. iShares Infrastructure ETF | Macquarie ETF vs. Global X Cloud | Macquarie ETF vs. Global X Cybersecurity | Macquarie ETF vs. Invesco Dynamic Leisure |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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