Correlation Between Ault Global and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Ault Global 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 Ault Global and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ault Global Holdings and ProShares UltraShort Bloomberg, you can compare the effects of market volatilities on Ault Global 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 Ault Global with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ault Global and ProShares UltraShort.
Diversification Opportunities for Ault Global and ProShares UltraShort
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ault and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ault Global Holdings and ProShares UltraShort Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and Ault Global 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 Ault Global Holdings 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 Ault Global i.e., Ault Global and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Ault Global and ProShares UltraShort
If you would invest 7,376 in ProShares UltraShort Bloomberg on January 25, 2024 and sell it today you would lose (826.00) from holding ProShares UltraShort Bloomberg or give up 11.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ault Global Holdings vs. ProShares UltraShort Bloomberg
Performance |
| Timeline |
| Ault Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares UltraShort |
Ault Global and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ault Global and ProShares UltraShort
The main advantage of trading using opposite Ault Global and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ault Global 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.| Ault Global vs. Ecolab Inc | Ault Global vs. Tarsus PharmaceuticalsInc | Ault Global vs. CVR Partners LP | Ault Global vs. CF Industries Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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