Correlation Between ProShares Ultra and Advisor Managed
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Advisor Managed 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 Advisor Managed 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 Advisor Managed Portfolios, you can compare the effects of market volatilities on ProShares Ultra and Advisor Managed 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 Advisor Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Advisor Managed.
Diversification Opportunities for ProShares Ultra and Advisor Managed
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Advisor is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Advisor Managed Portfolios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisor Managed Port 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 Advisor Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisor Managed Port has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Advisor Managed go up and down completely randomly.
Pair Corralation between ProShares Ultra and Advisor Managed
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Advisor Managed. In addition to that, ProShares Ultra is 1.04 times more volatile than Advisor Managed Portfolios. It trades about -0.16 of its total potential returns per unit of risk. Advisor Managed Portfolios is currently generating about 0.21 per unit of volatility. If you would invest 2,656 in Advisor Managed Portfolios on August 30, 2024 and sell it today you would earn a total of 367.00 from holding Advisor Managed Portfolios or generate 13.82% 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. Advisor Managed Portfolios
Performance |
| Timeline |
| ProShares Ultra Yen |
| Advisor Managed Port |
ProShares Ultra and Advisor Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Advisor Managed
The main advantage of trading using opposite ProShares Ultra and Advisor Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Advisor Managed 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 Advisor Managed will offset losses from the drop in Advisor Managed's 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 |
| Advisor Managed vs. Davis Select International | Advisor Managed vs. Tidal ETF Trust | Advisor Managed vs. Principal Value ETF | Advisor Managed vs. WisdomTree Emerging Markets |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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