Correlation Between ProShares Ultra and American Express
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and American Express 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 American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Bloomberg and American Express, you can compare the effects of market volatilities on ProShares Ultra and American Express 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 American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and American Express.
Diversification Opportunities for ProShares Ultra and American Express
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and American is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Bloomberg and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 Bloomberg are associated (or correlated) with American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and American Express go up and down completely randomly.
Pair Corralation between ProShares Ultra and American Express
Given the investment horizon of 90 days ProShares Ultra Bloomberg is expected to under-perform the American Express. In addition to that, ProShares Ultra is 4.03 times more volatile than American Express. It trades about -0.1 of its total potential returns per unit of risk. American Express is currently generating about 0.26 per unit of volatility. If you would invest 18,749 in American Express on January 25, 2024 and sell it today you would earn a total of 5,147 from holding American Express or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Bloomberg vs. American Express
Performance |
| Timeline |
| ProShares Ultra Bloomberg |
| American Express |
ProShares Ultra and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and American Express
The main advantage of trading using opposite ProShares Ultra and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. ProShares UltraShort Gold | ProShares Ultra vs. VanEck Junior Gold |
| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Oshidori International Holdings | American Express vs. US70082LAB36 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world |