This module allows you to analyze existing cross correlation between DOW and ProShares UltraShort Bloomberg Crude Oil. You can compare the effects of market volatilities on DOW and ProShares UltraShort 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 UltraShort. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ProShares UltraShort.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to under-perform the ProShares UltraShort. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.77 times less risky than ProShares UltraShort. The index trades about -0.12 of its potential returns per unit of risk. The ProShares UltraShort Bloomberg Crude Oil is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,174 in ProShares UltraShort Bloomberg Crude Oil on January 22, 2018 and sell it today you would earn a total of 104.00 from holding ProShares UltraShort Bloomberg Crude Oil or generate 4.78% return on investment over 30 days.