Correlation Between ProShares UltraShort and KraneShares
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and KraneShares 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 KraneShares 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 KraneShares, you can compare the effects of market volatilities on ProShares UltraShort and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and KraneShares.
Diversification Opportunities for ProShares UltraShort and KraneShares
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and KraneShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Yen and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and KraneShares go up and down completely randomly.
Pair Corralation between ProShares UltraShort and KraneShares
If you would invest 4,447 in ProShares UltraShort Yen on November 1, 2024 and sell it today you would earn a total of 106.00 from holding ProShares UltraShort Yen or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
ProShares UltraShort Yen vs. KraneShares
Performance |
| Timeline |
| ProShares UltraShort Yen |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and KraneShares
The main advantage of trading using opposite ProShares UltraShort and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' 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 |
| KraneShares vs. iShares JP Morgan | KraneShares vs. First Trust Emerging | KraneShares vs. VanEck China Bond | KraneShares vs. WisdomTree Emerging Currency |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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