Correlation Analysis Between DOW and ProShares Ultra

This module allows you to analyze existing cross correlation between DOW and ProShares Ultra Bloomberg Natural Gas. You can compare the effects of market volatilities on DOW 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 DOW with a short position of ProShares Ultra. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ProShares Ultra.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  ProShares Ultra Bloomberg Natu

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.31 times more return on investment than ProShares Ultra. However, DOW is 3.28 times less risky than ProShares Ultra. It trades about 0.05 of its potential returns per unit of risk. ProShares Ultra Bloomberg Natural Gas is currently generating about -0.36 per unit of risk. If you would invest  2,498,747  in DOW on June 18, 2018 and sell it today you would earn a total of  19,878  from holding DOW or generate 0.8% return on investment over 30 days.

Pair Corralation between DOW and ProShares Ultra

0.79
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy75.86%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ProShares Ultra Bloomberg Natu in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloo and DOW 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 DOW 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 Bloo has no effect on the direction of DOW i.e. DOW and ProShares Ultra go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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