Correlation Between ProShares Ultra and LAFFERTENGLER Equity
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and LAFFERTENGLER Equity 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 LAFFERTENGLER Equity 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 LAFFERTENGLER Equity Income, you can compare the effects of market volatilities on ProShares Ultra and LAFFERTENGLER Equity 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 LAFFERTENGLER Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and LAFFERTENGLER Equity.
Diversification Opportunities for ProShares Ultra and LAFFERTENGLER Equity
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and LAFFERTENGLER is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and LAFFERTENGLER Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAFFERTENGLER Equity 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 LAFFERTENGLER Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAFFERTENGLER Equity has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and LAFFERTENGLER Equity go up and down completely randomly.
Pair Corralation between ProShares Ultra and LAFFERTENGLER Equity
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.65 times less return on investment than LAFFERTENGLER Equity. In addition to that, ProShares Ultra is 1.83 times more volatile than LAFFERTENGLER Equity Income. It trades about 0.02 of its total potential returns per unit of risk. LAFFERTENGLER Equity Income is currently generating about 0.1 per unit of volatility. If you would invest 2,763 in LAFFERTENGLER Equity Income on September 13, 2024 and sell it today you would earn a total of 302.00 from holding LAFFERTENGLER Equity Income or generate 10.93% 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. LAFFERTENGLER Equity Income
Performance |
| Timeline |
| ProShares Ultra Yen |
| LAFFERTENGLER Equity |
ProShares Ultra and LAFFERTENGLER Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and LAFFERTENGLER Equity
The main advantage of trading using opposite ProShares Ultra and LAFFERTENGLER Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, LAFFERTENGLER Equity 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 LAFFERTENGLER Equity will offset losses from the drop in LAFFERTENGLER Equity'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 |
| LAFFERTENGLER Equity vs. FT Vest Equity | LAFFERTENGLER Equity vs. Northern Lights | LAFFERTENGLER Equity vs. Dimensional International High | LAFFERTENGLER Equity vs. JPMorgan Fundamental Data |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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