Correlation Between ProShares UltraShort and EA Series
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on ProShares UltraShort and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and EA Series.
Diversification Opportunities for ProShares UltraShort and EA Series
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and DTAN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Yen and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and EA Series go up and down completely randomly.
Pair Corralation between ProShares UltraShort and EA Series
Considering the 90-day investment horizon ProShares UltraShort is expected to generate 58.88 times less return on investment than EA Series. But when comparing it to its historical volatility, ProShares UltraShort Yen is 65.41 times less risky than EA Series. It trades about 0.11 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in EA Series Trust on November 3, 2024 and sell it today you would earn a total of 2,582 from holding EA Series Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
ProShares UltraShort Yen vs. EA Series Trust
Performance |
| Timeline |
| ProShares UltraShort Yen |
| EA Series Trust |
ProShares UltraShort and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and EA Series
The main advantage of trading using opposite ProShares UltraShort and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' 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 |
| EA Series vs. Freedom Day Dividend | EA Series vs. iShares MSCI China | EA Series vs. SmartETFs Dividend Builder | EA Series vs. Listed Funds Trust |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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