Correlation Between ProShares UltraShort and CHIR
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and CHIR 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 UltraShort and CHIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort Yen and CHIR, you can compare the effects of market volatilities on ProShares UltraShort and CHIR 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 UltraShort with a short position of CHIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and CHIR.
Diversification Opportunities for ProShares UltraShort and CHIR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and CHIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Yen and CHIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIR and ProShares UltraShort 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 UltraShort Yen are associated (or correlated) with CHIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIR has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and CHIR go up and down completely randomly.
Pair Corralation between ProShares UltraShort and CHIR
If you would invest 1,711 in CHIR on October 24, 2024 and sell it today you would earn a total of 0.00 from holding CHIR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
ProShares UltraShort Yen vs. CHIR
Performance |
| Timeline |
| ProShares UltraShort Yen |
| CHIR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and CHIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and CHIR
The main advantage of trading using opposite ProShares UltraShort and CHIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, CHIR 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 CHIR will offset losses from the drop in CHIR's long position.| ProShares UltraShort vs. ProShares UltraShort Euro | ProShares UltraShort vs. ProShares Ultra Yen | ProShares UltraShort vs. ProShares Ultra Euro | ProShares UltraShort vs. ProShares UltraShort MSCI |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |