Correlation Between ProShares Ultra and Gabelli ETFs
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Gabelli ETFs 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 Gabelli ETFs 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 Gabelli ETFs Trust, you can compare the effects of market volatilities on ProShares Ultra and Gabelli ETFs 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 Gabelli ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Gabelli ETFs.
Diversification Opportunities for ProShares Ultra and Gabelli ETFs
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Gabelli is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Gabelli ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli ETFs Trust 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 Gabelli ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli ETFs Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Gabelli ETFs go up and down completely randomly.
Pair Corralation between ProShares Ultra and Gabelli ETFs
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.77 times less return on investment than Gabelli ETFs. In addition to that, ProShares Ultra is 1.65 times more volatile than Gabelli ETFs Trust. It trades about 0.02 of its total potential returns per unit of risk. Gabelli ETFs Trust is currently generating about 0.1 per unit of volatility. If you would invest 2,680 in Gabelli ETFs Trust on September 2, 2024 and sell it today you would earn a total of 317.00 from holding Gabelli ETFs Trust or generate 11.83% 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. Gabelli ETFs Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Gabelli ETFs Trust |
ProShares Ultra and Gabelli ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Gabelli ETFs
The main advantage of trading using opposite ProShares Ultra and Gabelli ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Gabelli ETFs 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 Gabelli ETFs will offset losses from the drop in Gabelli ETFs' 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 |
| Gabelli ETFs vs. Freedom Day Dividend | Gabelli ETFs vs. iShares MSCI China | Gabelli ETFs vs. iShares Dividend and | Gabelli ETFs vs. SmartETFs Dividend Builder |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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