Correlation Between ProShares Ultra and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Natixis ETF 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 Natixis ETF 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 Natixis ETF Trust, you can compare the effects of market volatilities on ProShares Ultra and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Natixis ETF.
Diversification Opportunities for ProShares Ultra and Natixis ETF
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Natixis is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Natixis ETF go up and down completely randomly.
Pair Corralation between ProShares Ultra and Natixis ETF
Considering the 90-day investment horizon ProShares Ultra is expected to generate 1.67 times less return on investment than Natixis ETF. In addition to that, ProShares Ultra is 1.53 times more volatile than Natixis ETF Trust. It trades about 0.03 of its total potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.08 per unit of volatility. If you would invest 3,214 in Natixis ETF Trust on September 1, 2024 and sell it today you would earn a total of 305.00 from holding Natixis ETF Trust or generate 9.49% 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. Natixis ETF Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Natixis ETF Trust |
ProShares Ultra and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Natixis ETF
The main advantage of trading using opposite ProShares Ultra and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Natixis ETF vs. Vanguard Total Stock | Natixis ETF vs. SPDR SP 500 | Natixis ETF vs. iShares Core SP | Natixis ETF vs. Vanguard Dividend Appreciation |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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