Correlation Between ProShares Short and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both ProShares Short and ProShares Ultra 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 Short and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Short FTSE and ProShares Ultra FTSE, you can compare the effects of market volatilities on ProShares Short and ProShares Ultra 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 Short with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and ProShares Ultra.
Diversification Opportunities for ProShares Short and ProShares Ultra
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short FTSE and ProShares Ultra FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra FTSE and ProShares Short 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 Short FTSE are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra FTSE has no effect on the direction of ProShares Short i.e., ProShares Short and ProShares Ultra go up and down completely randomly.
Pair Corralation between ProShares Short and ProShares Ultra
Considering the 90-day investment horizon ProShares Short FTSE is expected to under-perform the ProShares Ultra. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Short FTSE is 2.01 times less risky than ProShares Ultra. The etf trades about -0.01 of its potential returns per unit of risk. The ProShares Ultra FTSE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,106 in ProShares Ultra FTSE on August 30, 2024 and sell it today you would lose (286.00) from holding ProShares Ultra FTSE or give up 13.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Short FTSE vs. ProShares Ultra FTSE
Performance |
| Timeline |
| ProShares Short FTSE |
| ProShares Ultra FTSE |
ProShares Short and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Short and ProShares Ultra
The main advantage of trading using opposite ProShares Short and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| ProShares Short vs. ProShares Ultra FTSE | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short Real |
| ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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