Correlation Between ProShares Ultra and Invesco Bloomberg
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Invesco Bloomberg 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 Invesco Bloomberg 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 Invesco Bloomberg MVP, you can compare the effects of market volatilities on ProShares Ultra and Invesco Bloomberg 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 Invesco Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Invesco Bloomberg.
Diversification Opportunities for ProShares Ultra and Invesco Bloomberg
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Invesco is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Invesco Bloomberg MVP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Bloomberg MVP 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 Invesco Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Bloomberg MVP has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Invesco Bloomberg go up and down completely randomly.
Pair Corralation between ProShares Ultra and Invesco Bloomberg
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.78 times less return on investment than Invesco Bloomberg. In addition to that, ProShares Ultra is 2.44 times more volatile than Invesco Bloomberg MVP. It trades about 0.03 of its total potential returns per unit of risk. Invesco Bloomberg MVP is currently generating about 0.2 per unit of volatility. If you would invest 4,331 in Invesco Bloomberg MVP on September 1, 2024 and sell it today you would earn a total of 747.00 from holding Invesco Bloomberg MVP or generate 17.25% 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. Invesco Bloomberg MVP
Performance |
| Timeline |
| ProShares Ultra Yen |
| Invesco Bloomberg MVP |
ProShares Ultra and Invesco Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Invesco Bloomberg
The main advantage of trading using opposite ProShares Ultra and Invesco Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Invesco Bloomberg 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 Invesco Bloomberg will offset losses from the drop in Invesco Bloomberg's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Invesco Bloomberg vs. iShares Small Cap | Invesco Bloomberg vs. Invesco ESG NASDAQ | Invesco Bloomberg vs. Invesco ESG NASDAQ | Invesco Bloomberg vs. BlackRock Carbon Transition |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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