Correlation Between ProShares Ultra and ZGEN
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and ZGEN 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 ZGEN 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 ZGEN, you can compare the effects of market volatilities on ProShares Ultra and ZGEN 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 ZGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and ZGEN.
Diversification Opportunities for ProShares Ultra and ZGEN
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ZGEN is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and ZGEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZGEN 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 ZGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZGEN has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and ZGEN go up and down completely randomly.
Pair Corralation between ProShares Ultra and ZGEN
If you would invest 2,050 in ProShares Ultra Yen on October 21, 2024 and sell it today you would earn a total of 5.00 from holding ProShares Ultra Yen or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
ProShares Ultra Yen vs. ZGEN
Performance |
| Timeline |
| ProShares Ultra Yen |
| ZGEN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and ZGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and ZGEN
The main advantage of trading using opposite ProShares Ultra and ZGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, ZGEN 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 ZGEN will offset losses from the drop in ZGEN'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 |
| ZGEN vs. FT Vest Equity | ZGEN vs. Zillow Group Class | ZGEN vs. Northern Lights | ZGEN vs. VanEck Vectors Moodys |
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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