Correlation Between ProShares Ultra and Unified Series
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Unified Series 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 Unified Series 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 Unified Series Trust, you can compare the effects of market volatilities on ProShares Ultra and Unified Series 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 Unified Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Unified Series.
Diversification Opportunities for ProShares Ultra and Unified Series
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Unified is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Unified Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unified Series 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 Unified Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unified Series Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Unified Series go up and down completely randomly.
Pair Corralation between ProShares Ultra and Unified Series
Considering the 90-day investment horizon ProShares Ultra is expected to generate 1.27 times less return on investment than Unified Series. In addition to that, ProShares Ultra is 1.96 times more volatile than Unified Series Trust. It trades about 0.07 of its total potential returns per unit of risk. Unified Series Trust is currently generating about 0.18 per unit of volatility. If you would invest 2,964 in Unified Series Trust on August 30, 2024 and sell it today you would earn a total of 98.00 from holding Unified Series Trust or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. Unified Series Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Unified Series Trust |
ProShares Ultra and Unified Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Unified Series
The main advantage of trading using opposite ProShares Ultra and Unified Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Unified Series 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 Unified Series will offset losses from the drop in Unified Series' 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 |
| Unified Series vs. Nuveen Growth Opportunities | Unified Series vs. Pacer Funds Trust | Unified Series vs. Nuveen Winslow Large Cap | Unified Series vs. Nushares ETF Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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