Correlation Analysis Between DOW and ProShares UltraShort

This module allows you to analyze existing cross correlation between DOW and ProShares UltraShort SP500. 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.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  ProShares UltraShort SP500

 Performance (%) 
      Timeline 

Pair Volatility

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 1.62 times less risky than ProShares UltraShort. The index trades about -0.04 of its potential returns per unit of risk. The ProShares UltraShort SP500 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,824  in ProShares UltraShort SP500 on December 17, 2018 and sell it today you would earn a total of  210.00  from holding ProShares UltraShort SP500 or generate 5.49% return on investment over 30 days.

Pair Corralation between DOW and ProShares UltraShort

-0.97
Time Period2 Months [change]
DirectionNegative 
StrengthSignificant
Accuracy97.5%
ValuesDaily Returns

Diversification Opportunities for DOW and ProShares UltraShort

DOW diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ProShares UltraShort SP500 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort 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 UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of DOW i.e. DOW and ProShares UltraShort go up and down completely randomly.
    Optimize

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.


 
Search macroaxis.com