Correlation Between ProShares Ultra and EQOP
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and EQOP 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 EQOP 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 EQOP, you can compare the effects of market volatilities on ProShares Ultra and EQOP 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 EQOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and EQOP.
Diversification Opportunities for ProShares Ultra and EQOP
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and EQOP is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and EQOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQOP 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 EQOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQOP has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and EQOP go up and down completely randomly.
Pair Corralation between ProShares Ultra and EQOP
If you would invest 2,164 in ProShares Ultra Yen on August 30, 2024 and sell it today you would earn a total of 51.00 from holding ProShares Ultra Yen or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
ProShares Ultra Yen vs. EQOP
Performance |
| Timeline |
| ProShares Ultra Yen |
| EQOP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and EQOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and EQOP
The main advantage of trading using opposite ProShares Ultra and EQOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, EQOP 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 EQOP will offset losses from the drop in EQOP'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 |
| EQOP vs. JPMorgan BetaBuilders International | EQOP vs. JPMorgan Core Plus | EQOP vs. JPMorgan BetaBuilders Canada | EQOP vs. JPMorgan Emerging Markets |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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