Correlation Between ProShares Ultra and Harbor Dividend
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Harbor Dividend 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 Harbor Dividend 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 Harbor Dividend Growth, you can compare the effects of market volatilities on ProShares Ultra and Harbor Dividend 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 Harbor Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Harbor Dividend.
Diversification Opportunities for ProShares Ultra and Harbor Dividend
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Harbor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Harbor Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Dividend Growth 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 Harbor Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Dividend Growth has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Harbor Dividend go up and down completely randomly.
Pair Corralation between ProShares Ultra and Harbor Dividend
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Harbor Dividend. In addition to that, ProShares Ultra is 1.87 times more volatile than Harbor Dividend Growth. It trades about -0.15 of its total potential returns per unit of risk. Harbor Dividend Growth is currently generating about 0.07 per unit of volatility. If you would invest 1,499 in Harbor Dividend Growth on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Harbor Dividend Growth or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Harbor Dividend Growth
Performance |
| Timeline |
| ProShares Ultra Yen |
| Harbor Dividend Growth |
ProShares Ultra and Harbor Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Harbor Dividend
The main advantage of trading using opposite ProShares Ultra and Harbor Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Harbor Dividend 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 Harbor Dividend will offset losses from the drop in Harbor Dividend's long position.| ProShares Ultra vs. ProShares VIX Short Term | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. iPath Series B |
| Harbor Dividend vs. Harbor All Weather Inflation | Harbor Dividend vs. Harbor Corporate Culture | Harbor Dividend vs. iShares International Dividend | Harbor Dividend vs. Harbor Long Term Growers |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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