Pair Correlation Between DOW and ProShares UltraPro

This module allows you to analyze existing cross correlation between DOW and ProShares UltraPro 3x Short Crude Oil. You can compare the effects of market volatilities on DOW and ProShares UltraPro 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 UltraPro. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ProShares UltraPro.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   ProShares UltraPro 3x Short Cr
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.05 times more return on investment than ProShares UltraPro. However, DOW is 18.19 times less risky than ProShares UltraPro. It trades about 0.57 of its potential returns per unit of risk. ProShares UltraPro 3x Short Crude Oil is currently generating about -0.1 per unit of risk. If you would invest  2,233,135  in DOW on September 18, 2017 and sell it today you would earn a total of  66,609  from holding DOW or generate 2.98% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and ProShares UltraPro
-0.04

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ProShares UltraPro 3x Short Cr in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro 3x 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 UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro 3x has no effect on the direction of DOW i.e. DOW and ProShares UltraPro go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns