Correlation Between ProShares Ultra and KraneShares SSE
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and KraneShares SSE 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 KraneShares SSE 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 KraneShares SSE STAR, you can compare the effects of market volatilities on ProShares Ultra and KraneShares SSE 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 KraneShares SSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and KraneShares SSE.
Diversification Opportunities for ProShares Ultra and KraneShares SSE
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and KraneShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and KraneShares SSE STAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares SSE STAR 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 KraneShares SSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares SSE STAR has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and KraneShares SSE go up and down completely randomly.
Pair Corralation between ProShares Ultra and KraneShares SSE
Considering the 90-day investment horizon ProShares Ultra Yen is expected to generate 0.46 times more return on investment than KraneShares SSE. However, ProShares Ultra Yen is 2.17 times less risky than KraneShares SSE. It trades about 0.07 of its potential returns per unit of risk. KraneShares SSE STAR is currently generating about 0.03 per unit of risk. If you would invest 2,207 in ProShares Ultra Yen on September 1, 2024 and sell it today you would earn a total of 54.00 from holding ProShares Ultra Yen or generate 2.45% 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. KraneShares SSE STAR
Performance |
| Timeline |
| ProShares Ultra Yen |
| KraneShares SSE STAR |
ProShares Ultra and KraneShares SSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and KraneShares SSE
The main advantage of trading using opposite ProShares Ultra and KraneShares SSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, KraneShares SSE 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 KraneShares SSE will offset losses from the drop in KraneShares SSE's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short VIX | ProShares Ultra vs. ProShares Short Russell2000 |
| KraneShares SSE vs. KraneShares MSCI All | KraneShares SSE vs. KraneShares Bosera MSCI | KraneShares SSE vs. KraneShares MSCI China |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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