Correlation Between ProShares Ultra and Nuveen Sustainable
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Nuveen Sustainable 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 Nuveen Sustainable 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 Nuveen Sustainable Core, you can compare the effects of market volatilities on ProShares Ultra and Nuveen Sustainable 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 Nuveen Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Nuveen Sustainable.
Diversification Opportunities for ProShares Ultra and Nuveen Sustainable
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Nuveen is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Nuveen Sustainable Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Sustainable Core 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 Nuveen Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Sustainable Core has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Nuveen Sustainable go up and down completely randomly.
Pair Corralation between ProShares Ultra and Nuveen Sustainable
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.03 times less return on investment than Nuveen Sustainable. In addition to that, ProShares Ultra is 1.87 times more volatile than Nuveen Sustainable Core. It trades about 0.03 of its total potential returns per unit of risk. Nuveen Sustainable Core is currently generating about 0.11 per unit of volatility. If you would invest 2,635 in Nuveen Sustainable Core on September 1, 2024 and sell it today you would earn a total of 317.00 from holding Nuveen Sustainable Core or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Nuveen Sustainable Core
Performance |
| Timeline |
| ProShares Ultra Yen |
| Nuveen Sustainable Core |
ProShares Ultra and Nuveen Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Nuveen Sustainable
The main advantage of trading using opposite ProShares Ultra and Nuveen Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Nuveen Sustainable 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 Nuveen Sustainable will offset losses from the drop in Nuveen Sustainable's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Nuveen Sustainable vs. FT Vest Equity | Nuveen Sustainable vs. Northern Lights | Nuveen Sustainable vs. Dimensional International High | Nuveen Sustainable vs. Matthews China Discovery |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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