Correlation Between ProShares Ultra and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg Investment, you can compare the effects of market volatilities on ProShares Ultra and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SPDR Bloomberg.
Diversification Opportunities for ProShares Ultra and SPDR Bloomberg
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and SPDR is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and SPDR Bloomberg Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Investment 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Investment has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between ProShares Ultra and SPDR Bloomberg
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the SPDR Bloomberg. In addition to that, ProShares Ultra is 11.09 times more volatile than SPDR Bloomberg Investment. It trades about -0.04 of its total potential returns per unit of risk. SPDR Bloomberg Investment is currently generating about 0.2 per unit of volatility. If you would invest 2,721 in SPDR Bloomberg Investment on September 2, 2024 and sell it today you would earn a total of 361.00 from holding SPDR Bloomberg Investment or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. SPDR Bloomberg Investment
Performance |
| Timeline |
| ProShares Ultra Yen |
| SPDR Bloomberg Investment |
ProShares Ultra and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and SPDR Bloomberg
The main advantage of trading using opposite ProShares Ultra and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg'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 |
| SPDR Bloomberg vs. iShares Floating Rate | SPDR Bloomberg vs. VanEck Investment Grade | SPDR Bloomberg vs. SPDR Blackstone Senior | SPDR Bloomberg vs. Invesco Ultra Short |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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