Proshares Ultra Oil Etf Volatility
| DIG Etf | USD 46.47 0.12 0.26% |
ProShares Ultra appears to be very steady, given 3 months investment horizon. ProShares Ultra Oil maintains Sharpe Ratio (i.e., Efficiency) of 0.0876, which implies the entity had a 0.0876% return per unit of risk over the last 3 months. We have found thirty technical indicators for ProShares Ultra Oil, which you can use to evaluate the volatility of the etf. Please evaluate ProShares Ultra's Coefficient Of Variation of 860.97, risk adjusted performance of 0.0959, and Semi Deviation of 2.41 to confirm if our risk estimates are consistent with your expectations. Key indicators related to ProShares Ultra's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
ProShares Ultra Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of ProShares daily returns, and it is calculated using variance and standard deviation. We also use ProShares's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ProShares Ultra volatility.
ProShares |
Downward market volatility can be a perfect environment for investors who play the long game with ProShares Ultra. They may decide to buy additional shares of ProShares Ultra at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with ProShares Etf
| 0.73 | SSO | ProShares Ultra SP500 | PairCorr |
| 0.74 | SPXL | Direxion Daily SP500 | PairCorr |
| 0.7 | QLD | ProShares Ultra QQQ | PairCorr |
| 0.73 | UPRO | ProShares UltraPro SP500 | PairCorr |
| 0.64 | TECL | Direxion Daily Technology | PairCorr |
| 0.95 | GUSH | Direxion Daily SP | PairCorr |
| 0.74 | FNGU | MicroSectors FANG Index | PairCorr |
Moving against ProShares Etf
ProShares Ultra Market Sensitivity And Downside Risk
ProShares Ultra's beta coefficient measures the volatility of ProShares etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents ProShares etf's returns against your selected market. In other words, ProShares Ultra's beta of 1.49 provides an investor with an approximation of how much risk ProShares Ultra etf can potentially add to one of your existing portfolios. ProShares Ultra Oil currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.09. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ProShares Ultra's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ProShares Ultra's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze ProShares Ultra Oil Demand TrendCheck current 90 days ProShares Ultra correlation with market (Dow Jones Industrial)ProShares Beta |
ProShares standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.4 |
It is essential to understand the difference between upside risk (as represented by ProShares Ultra's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ProShares Ultra's daily returns or price. Since the actual investment returns on holding a position in proshares etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in ProShares Ultra.
ProShares Ultra Oil Etf Volatility Analysis
Volatility refers to the frequency at which ProShares Ultra etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ProShares Ultra's price changes. Investors will then calculate the volatility of ProShares Ultra's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of ProShares Ultra's volatility:
Historical Volatility
This type of etf volatility measures ProShares Ultra's fluctuations based on previous trends. It's commonly used to predict ProShares Ultra's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for ProShares Ultra's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on ProShares Ultra's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. ProShares Ultra Oil Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
ProShares Ultra Projected Return Density Against Market
Considering the 90-day investment horizon the etf has the beta coefficient of 1.4925 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, ProShares Ultra will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ProShares Ultra or ProShares sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ProShares Ultra's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ProShares etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
ProShares Ultra Oil has an alpha of 0.0905, implying that it can generate a 0.0905 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a ProShares Ultra Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.ProShares Ultra Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of ProShares Ultra is 1142.09. The daily returns are distributed with a variance of 5.78 and standard deviation of 2.4. The mean deviation of ProShares Ultra Oil is currently at 1.82. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.09 | |
β | Beta against Dow Jones | 1.49 | |
σ | Overall volatility | 2.40 | |
Ir | Information ratio | 0.06 |
ProShares Ultra Etf Return Volatility
ProShares Ultra historical daily return volatility represents how much of ProShares Ultra etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Exchange Traded Fund has volatility of 2.4037% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About ProShares Ultra Volatility
Volatility is a rate at which the price of ProShares Ultra or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ProShares Ultra may increase or decrease. In other words, similar to ProShares's beta indicator, it measures the risk of ProShares Ultra and helps estimate the fluctuations that may happen in a short period of time. So if prices of ProShares Ultra fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. Ultra Oil is traded on NYSEARCA Exchange in the United States.
ProShares Ultra's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on ProShares Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ProShares Ultra's price varies over time.
3 ways to utilize ProShares Ultra's volatility to invest better
Higher ProShares Ultra's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ProShares Ultra Oil etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. ProShares Ultra Oil etf volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of ProShares Ultra Oil investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ProShares Ultra's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of ProShares Ultra's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ProShares Ultra Investment Opportunity
ProShares Ultra Oil has a volatility of 2.4 and is 3.16 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of ProShares Ultra Oil is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use ProShares Ultra Oil to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of ProShares Ultra to be traded at $48.79 in 90 days.Very weak diversification
The correlation between ProShares Ultra Oil and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Oil and DJI in the same portfolio, assuming nothing else is changed.
ProShares Ultra Additional Risk Indicators
The analysis of ProShares Ultra's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in ProShares Ultra's investment and either accepting that risk or mitigating it. Along with some common measures of ProShares Ultra etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0959 | |||
| Market Risk Adjusted Performance | 0.1914 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 2.41 | |||
| Downside Deviation | 2.65 | |||
| Coefficient Of Variation | 860.97 | |||
| Standard Deviation | 2.42 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
ProShares Ultra Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against ProShares Ultra as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. ProShares Ultra's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, ProShares Ultra's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to ProShares Ultra Oil.
When determining whether ProShares Ultra Oil is a strong investment it is important to analyze ProShares Ultra's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ProShares Ultra's future performance. For an informed investment choice regarding ProShares Etf, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in ProShares Ultra Oil. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
The market value of ProShares Ultra Oil is measured differently than its book value, which is the value of ProShares that is recorded on the company's balance sheet. Investors also form their own opinion of ProShares Ultra's value that differs from its market value or its book value, called intrinsic value, which is ProShares Ultra's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ProShares Ultra's market value can be influenced by many factors that don't directly affect ProShares Ultra's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ProShares Ultra's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProShares Ultra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProShares Ultra's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.