Correlation Between ProShares Ultra and Impact Shares
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Impact Shares 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 Impact Shares 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 Impact Shares YWCA, you can compare the effects of market volatilities on ProShares Ultra and Impact Shares 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 Impact Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Impact Shares.
Diversification Opportunities for ProShares Ultra and Impact Shares
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Impact is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Impact Shares YWCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Shares YWCA 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 Impact Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Shares YWCA has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Impact Shares go up and down completely randomly.
Pair Corralation between ProShares Ultra and Impact Shares
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Impact Shares. In addition to that, ProShares Ultra is 1.79 times more volatile than Impact Shares YWCA. It trades about -0.05 of its total potential returns per unit of risk. Impact Shares YWCA is currently generating about 0.11 per unit of volatility. If you would invest 2,623 in Impact Shares YWCA on August 27, 2024 and sell it today you would earn a total of 1,356 from holding Impact Shares YWCA or generate 51.7% 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. Impact Shares YWCA
Performance |
| Timeline |
| ProShares Ultra Yen |
| Impact Shares YWCA |
ProShares Ultra and Impact Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Impact Shares
The main advantage of trading using opposite ProShares Ultra and Impact Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Impact Shares 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 Impact Shares will offset losses from the drop in Impact Shares' 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 |
| Impact Shares vs. Salon City | Impact Shares vs. Innovator ETFs Trust | Impact Shares vs. Impact Shares NAACP | Impact Shares vs. Searchlight Minerals Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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