This module allows you to analyze existing cross correlation between DOW and ProShares UltraShort SmallCap600. 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 generate 0.46 times more return on investment than ProShares UltraShort. However, DOW is 2.18 times less risky than ProShares UltraShort. It trades about 0.55 of its potential returns per unit of risk. ProShares UltraShort SmallCap600 is currently generating about -0.33 per unit of risk. If you would invest 2,479,220 in DOW on December 17, 2017 and sell it today you would earn a total of 101,099 from holding DOW or generate 4.08% return on investment over 30 days.