Correlation Between ProShares Ultra and US Commodity
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and US Commodity at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ProShares Ultra and US Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Silver and US Commodity Funds, you can compare the effects of market volatilities on ProShares Ultra and US Commodity 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 ProShares Ultra with a short position of US Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and US Commodity.
Diversification Opportunities for ProShares Ultra and US Commodity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and USOU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Silver and US Commodity Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Commodity Funds and ProShares Ultra 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 ProShares Ultra Silver are associated (or correlated) with US Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Commodity Funds has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and US Commodity go up and down completely randomly.
Pair Corralation between ProShares Ultra and US Commodity
If you would invest 2,833 in ProShares Ultra Silver on January 24, 2024 and sell it today you would earn a total of 590.00 from holding ProShares Ultra Silver or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Ultra Silver vs. US Commodity Funds
Performance |
| Timeline |
| ProShares Ultra Silver |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and US Commodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and US Commodity
The main advantage of trading using opposite ProShares Ultra and US Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, US Commodity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in US Commodity will offset losses from the drop in US Commodity's long position.| ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. ProShares UltraShort Gold | ProShares Ultra vs. VanEck Junior Gold |
| US Commodity vs. ProShares UltraShort Silver | US Commodity vs. ProShares UltraShort Gold | US Commodity vs. VanEck Junior Gold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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