Correlation Between ProShares and Direxion Daily
Can any of the company-specific risk be diversified away by investing in both ProShares and Direxion Daily 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 and Direxion Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares and Direxion Daily Gold, you can compare the effects of market volatilities on ProShares and Direxion Daily 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 with a short position of Direxion Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and Direxion Daily.
Diversification Opportunities for ProShares and Direxion Daily
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Direxion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares and Direxion Daily Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Daily Gold and ProShares 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 are associated (or correlated) with Direxion Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Daily Gold has no effect on the direction of ProShares i.e., ProShares and Direxion Daily go up and down completely randomly.
Pair Corralation between ProShares and Direxion Daily
If you would invest (100.00) in ProShares on January 19, 2024 and sell it today you would earn a total of 100.00 from holding ProShares or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares vs. Direxion Daily Gold
Performance |
| Timeline |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Direxion Daily Gold |
ProShares and Direxion Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and Direxion Daily
The main advantage of trading using opposite ProShares and Direxion Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, Direxion Daily 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 Direxion Daily will offset losses from the drop in Direxion Daily's long position.| ProShares vs. ProShares Ultra SP500 | ProShares vs. HUMANA INC | ProShares vs. Aquagold International | ProShares vs. Thrivent High Yield |
| Direxion Daily vs. ProShares Ultra SP500 | Direxion Daily vs. HUMANA INC | Direxion Daily vs. Aquagold International | Direxion Daily vs. Thrivent High Yield |
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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