Correlation Between ProShares Ultra and Zacks Trust
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Zacks Trust 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 Zacks Trust 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 Zacks Trust , you can compare the effects of market volatilities on ProShares Ultra and Zacks Trust 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 Zacks Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Zacks Trust.
Diversification Opportunities for ProShares Ultra and Zacks Trust
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Zacks is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Zacks Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zacks 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 Zacks Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zacks Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Zacks Trust go up and down completely randomly.
Pair Corralation between ProShares Ultra and Zacks Trust
Considering the 90-day investment horizon ProShares Ultra is expected to generate 2.42 times less return on investment than Zacks Trust. In addition to that, ProShares Ultra is 2.46 times more volatile than Zacks Trust . It trades about 0.03 of its total potential returns per unit of risk. Zacks Trust is currently generating about 0.17 per unit of volatility. If you would invest 2,809 in Zacks Trust on September 1, 2024 and sell it today you would earn a total of 416.00 from holding Zacks Trust or generate 14.81% 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. Zacks Trust
Performance |
| Timeline |
| ProShares Ultra Yen |
| Zacks Trust |
ProShares Ultra and Zacks Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and Zacks Trust
The main advantage of trading using opposite ProShares Ultra and Zacks Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Zacks Trust 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 Zacks Trust will offset losses from the drop in Zacks Trust's long position.| ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. iPath Series B | ProShares Ultra vs. ProShares Short Russell2000 |
| Zacks Trust vs. First Trust Expanded | Zacks Trust vs. First Trust Exchange Traded | Zacks Trust vs. First Trust Exchange Traded | Zacks Trust vs. Innovator Equity Accelerated |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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