Correlation Between ETF Securities and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both ETF Securities and ProShares UltraShort 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 ETF Securities and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETF Securities and ProShares UltraShort Bloomberg, you can compare the effects of market volatilities on ETF Securities 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 ETF Securities with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETF Securities and ProShares UltraShort.
Diversification Opportunities for ETF Securities and ProShares UltraShort
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETF and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETF Securities and ProShares UltraShort Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and ETF Securities 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 ETF Securities 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 ETF Securities i.e., ETF Securities and ProShares UltraShort go up and down completely randomly.
Pair Corralation between ETF Securities and ProShares UltraShort
If you would invest (100.00) in ETF Securities on January 24, 2024 and sell it today you would earn a total of 100.00 from holding ETF Securities or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ETF Securities vs. ProShares UltraShort Bloomberg
Performance |
| Timeline |
| ETF Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares UltraShort |
ETF Securities and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETF Securities and ProShares UltraShort
The main advantage of trading using opposite ETF Securities and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETF Securities position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort's long position.| ETF Securities vs. Vanguard Total Stock | ETF Securities vs. SPDR SP 500 | ETF Securities vs. iShares Core SP | ETF Securities vs. Vanguard Total Bond |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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