Correlation Between ProShares Ultra and Iq Candriam
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Iq Candriam 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 Iq Candriam 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 Iq Candriam ESG, you can compare the effects of market volatilities on ProShares Ultra and Iq Candriam 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 Iq Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Iq Candriam.
Diversification Opportunities for ProShares Ultra and Iq Candriam
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and IQSM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Iq Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iq Candriam ESG 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 Iq Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iq Candriam ESG has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Iq Candriam go up and down completely randomly.
Pair Corralation between ProShares Ultra and Iq Candriam
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.65 times less return on investment than Iq Candriam. In addition to that, ProShares Ultra is 1.78 times more volatile than Iq Candriam ESG. It trades about 0.07 of its total potential returns per unit of risk. Iq Candriam ESG is currently generating about 0.35 per unit of volatility. If you would invest 3,264 in Iq Candriam ESG on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Iq Candriam ESG or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Iq Candriam ESG
Performance |
| Timeline |
| ProShares Ultra Yen |
| Iq Candriam ESG |
ProShares Ultra and Iq Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Iq Candriam
The main advantage of trading using opposite ProShares Ultra and Iq Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Iq Candriam 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 Iq Candriam will offset losses from the drop in Iq Candriam's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Iq Candriam vs. JPMorgan Fundamental Data | Iq Candriam vs. Vanguard Mid Cap Index | Iq Candriam vs. SPDR SP 400 | Iq Candriam vs. SPDR SP 400 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |