Correlation Between Meta Platforms and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Meta Platforms 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 Meta Platforms and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on Meta Platforms 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 Meta Platforms with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and ProShares Ultra.
Diversification Opportunities for Meta Platforms and ProShares Ultra
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meta and ProShares is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms 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 Meta Platforms 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 Meta Platforms 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 Meta Platforms i.e., Meta Platforms and ProShares Ultra go up and down completely randomly.
Pair Corralation between Meta Platforms and ProShares Ultra
If you would invest 16,949 in Meta Platforms on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Meta Platforms or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Meta Platforms vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Bloomberg |
Meta Platforms and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and ProShares Ultra
The main advantage of trading using opposite Meta Platforms and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms 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.| Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
| ProShares Ultra vs. Drum Income Plus | ProShares Ultra vs. EA Series Trust | ProShares Ultra vs. Global X MLP | ProShares Ultra vs. ETRACS Quarterly Pay |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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