Correlation Between CHIX and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both CHIX and ProShares Ultra 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 CHIX and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIX and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on CHIX and ProShares Ultra 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 CHIX with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIX and ProShares Ultra.
Diversification Opportunities for CHIX and ProShares Ultra
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHIX and ProShares is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CHIX and ProShares Ultra Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloomberg and CHIX 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 CHIX are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Bloomberg has no effect on the direction of CHIX i.e., CHIX and ProShares Ultra go up and down completely randomly.
Pair Corralation between CHIX and ProShares Ultra
If you would invest 1,372 in ProShares Ultra Bloomberg on January 25, 2024 and sell it today you would lose (21.50) from holding ProShares Ultra Bloomberg or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CHIX vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| CHIX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Bloomberg |
CHIX and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIX and ProShares Ultra
The main advantage of trading using opposite CHIX and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIX position performs unexpectedly, ProShares Ultra 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 Ultra will offset losses from the drop in ProShares Ultra's long position.| CHIX vs. KraneShares CSI China | CHIX vs. iShares MSCI India | CHIX vs. HUMANA INC | CHIX vs. Aquagold International |
| ProShares Ultra vs. ProShares Ultra Silver | ProShares Ultra vs. ProShares Ultra Gold | ProShares Ultra vs. DB Gold Double | ProShares Ultra vs. MicroSectors Gold Miners |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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