Correlation Between Pampa Energia and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Pampa Energia 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 Pampa Energia and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pampa Energia SA and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on Pampa Energia 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 Pampa Energia with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pampa Energia and ProShares Ultra.
Diversification Opportunities for Pampa Energia and ProShares Ultra
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pampa and ProShares is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pampa Energia SA 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 Pampa Energia 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 Pampa Energia SA 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 Pampa Energia i.e., Pampa Energia and ProShares Ultra go up and down completely randomly.
Pair Corralation between Pampa Energia and ProShares Ultra
Considering the 90-day investment horizon Pampa Energia is expected to generate 5.08 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, Pampa Energia SA is 1.69 times less risky than ProShares Ultra. It trades about 0.05 of its potential returns per unit of risk. ProShares Ultra Bloomberg is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,366 in ProShares Ultra Bloomberg on February 11, 2024 and sell it today you would earn a total of 182.00 from holding ProShares Ultra Bloomberg or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pampa Energia SA vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| Pampa Energia SA |
| ProShares Ultra Bloomberg |
Pampa Energia and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pampa Energia and ProShares Ultra
The main advantage of trading using opposite Pampa Energia and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pampa Energia 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.| Pampa Energia vs. AGL Energy | Pampa Energia vs. Power Assets Holdings | Pampa Energia vs. Maxim Power Corp | Pampa Energia vs. Huaneng Power International |
| ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. ProShares UltraShort Gold | ProShares Ultra vs. VanEck Junior Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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