This module allows you to analyze existing cross correlation between VelocityShares 3x Inv Natural Gas ETN and ProShares UltraShort Bloomberg Crude Oil. You can compare the effects of market volatilities on VelocityShares 3x 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 VelocityShares 3x with a short position of ProShares UltraShort. See also your portfolio center
. Please also check ongoing floating volatility patterns of VelocityShares 3x
and ProShares UltraShort
VelocityShares 3x Inv Natural vs ProShares UltraShort Bloomberg
Given the investment horizon of 30 days, VelocityShares 3x Inv Natural Gas ETN is expected to generate 2.6 times more return on investment than ProShares UltraShort. However, VelocityShares 3x is 2.6 times more volatile than ProShares UltraShort Bloomberg Crude Oil. It trades about 0.31 of its potential returns per unit of risk. ProShares UltraShort Bloomberg Crude Oil is currently generating about -0.07 per unit of risk. If you would invest 2,536 in VelocityShares 3x Inv Natural Gas ETN on November 14, 2017 and sell it today you would earn a total of 1,261 from holding VelocityShares 3x Inv Natural Gas ETN or generate 49.72% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding VelocityShares 3x Inv Natural and ProShares UltraShort Bloomberg in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and VelocityShares 3x 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 VelocityShares 3x Inv Natural Gas ETN 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 VelocityShares 3x i.e. VelocityShares 3x and ProShares UltraShort go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in VelocityShares 3x Inv Natural Gas ETN are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days ProShares UltraShort Bloomberg Crude Oil has generated negative risk-adjusted returns adding no value to investors with long positions.