Correlation Between ProShares Ultra and EMQQ Emerging
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and EMQQ Emerging 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 EMQQ Emerging 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 EMQQ The Emerging, you can compare the effects of market volatilities on ProShares Ultra and EMQQ Emerging 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 EMQQ Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and EMQQ Emerging.
Diversification Opportunities for ProShares Ultra and EMQQ Emerging
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and EMQQ is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and EMQQ The Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMQQ The Emerging 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 EMQQ Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMQQ The Emerging has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and EMQQ Emerging go up and down completely randomly.
Pair Corralation between ProShares Ultra and EMQQ Emerging
Considering the 90-day investment horizon ProShares Ultra Yen is expected to generate 1.34 times more return on investment than EMQQ Emerging. However, ProShares Ultra is 1.34 times more volatile than EMQQ The Emerging. It trades about 0.07 of its potential returns per unit of risk. EMQQ The Emerging is currently generating about -0.09 per unit of risk. If you would invest 2,199 in ProShares Ultra Yen on September 4, 2024 and sell it today you would earn a total of 51.00 from holding ProShares Ultra Yen or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. EMQQ The Emerging
Performance |
| Timeline |
| ProShares Ultra Yen |
| EMQQ The Emerging |
ProShares Ultra and EMQQ Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and EMQQ Emerging
The main advantage of trading using opposite ProShares Ultra and EMQQ Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, EMQQ Emerging 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 EMQQ Emerging will offset losses from the drop in EMQQ Emerging'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 |
| EMQQ Emerging vs. Invesco China Technology | EMQQ Emerging vs. Amplify Online Retail | EMQQ Emerging vs. KraneShares CSI China | EMQQ Emerging vs. Global X MSCI |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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