Correlation Between ProShares Ultra and Brendan Wood
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Brendan Wood 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 Brendan Wood 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 Brendan Wood TopGun, you can compare the effects of market volatilities on ProShares Ultra and Brendan Wood 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 Brendan Wood. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Brendan Wood.
Diversification Opportunities for ProShares Ultra and Brendan Wood
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Brendan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Brendan Wood TopGun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brendan Wood TopGun 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 Brendan Wood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brendan Wood TopGun has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Brendan Wood go up and down completely randomly.
Pair Corralation between ProShares Ultra and Brendan Wood
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.03 times less return on investment than Brendan Wood. In addition to that, ProShares Ultra is 2.78 times more volatile than Brendan Wood TopGun. It trades about 0.07 of its total potential returns per unit of risk. Brendan Wood TopGun is currently generating about 0.42 per unit of volatility. If you would invest 3,383 in Brendan Wood TopGun on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Brendan Wood TopGun or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Brendan Wood TopGun
Performance |
| Timeline |
| ProShares Ultra Yen |
| Brendan Wood TopGun |
ProShares Ultra and Brendan Wood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Brendan Wood
The main advantage of trading using opposite ProShares Ultra and Brendan Wood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Brendan Wood 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 Brendan Wood will offset losses from the drop in Brendan Wood's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Brendan Wood vs. Vanguard Total Stock | Brendan Wood vs. SPDR SP 500 | Brendan Wood vs. iShares Core SP | Brendan Wood 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |