Correlation Between ProShares Ultra and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and DoubleLine 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 DoubleLine 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 DoubleLine ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and DoubleLine 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 DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and DoubleLine ETF.
Diversification Opportunities for ProShares Ultra and DoubleLine ETF
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and DoubleLine is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and DoubleLine ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine 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 DoubleLine ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and DoubleLine ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and DoubleLine ETF
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the DoubleLine ETF. In addition to that, ProShares Ultra is 1.65 times more volatile than DoubleLine ETF Trust. It trades about -0.07 of its total potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.12 per unit of volatility. If you would invest 2,501 in DoubleLine ETF Trust on August 26, 2024 and sell it today you would earn a total of 520.00 from holding DoubleLine ETF Trust or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 43.4% |
| Values | Daily Returns |
ProShares Ultra Yen vs. DoubleLine ETF Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| DoubleLine ETF Trust |
ProShares Ultra and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and DoubleLine ETF
The main advantage of trading using opposite ProShares Ultra and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, DoubleLine 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 DoubleLine ETF will offset losses from the drop in DoubleLine ETF's long position.| ProShares Ultra vs. ProShares VIX Short Term | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. iPath Series B |
| DoubleLine ETF vs. FT Vest Equity | DoubleLine ETF vs. Northern Lights | DoubleLine ETF vs. Dimensional International High | DoubleLine ETF vs. First Trust Exchange Traded |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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