Correlation Between ProShares Ultra and CHIS
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and CHIS 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 CHIS 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 CHIS, you can compare the effects of market volatilities on ProShares Ultra and CHIS 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 CHIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and CHIS.
Diversification Opportunities for ProShares Ultra and CHIS
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and CHIS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and CHIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIS 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 CHIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIS has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and CHIS go up and down completely randomly.
Pair Corralation between ProShares Ultra and CHIS
If you would invest 2,207 in ProShares Ultra Yen on September 1, 2024 and sell it today you would earn a total of 54.00 from holding ProShares Ultra Yen or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
ProShares Ultra Yen vs. CHIS
Performance |
| Timeline |
| ProShares Ultra Yen |
| CHIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and CHIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and CHIS
The main advantage of trading using opposite ProShares Ultra and CHIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, CHIS 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 CHIS will offset losses from the drop in CHIS's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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