Correlation Between ProShares UltraShort and DGAZ
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and DGAZ 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 UltraShort and DGAZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort Bloomberg and DGAZ, you can compare the effects of market volatilities on ProShares UltraShort and DGAZ 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 UltraShort with a short position of DGAZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and DGAZ.
Diversification Opportunities for ProShares UltraShort and DGAZ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and DGAZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Bloomberg and DGAZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGAZ and ProShares UltraShort 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 UltraShort Bloomberg are associated (or correlated) with DGAZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGAZ has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and DGAZ go up and down completely randomly.
Pair Corralation between ProShares UltraShort and DGAZ
If you would invest (100.00) in DGAZ on January 26, 2024 and sell it today you would earn a total of 100.00 from holding DGAZ 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 UltraShort Bloomberg vs. DGAZ
Performance |
| Timeline |
| ProShares UltraShort |
| DGAZ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and DGAZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and DGAZ
The main advantage of trading using opposite ProShares UltraShort and DGAZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, DGAZ 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 DGAZ will offset losses from the drop in DGAZ's long position.| ProShares UltraShort vs. ProShares Ultra Bloomberg | ProShares UltraShort vs. Direxion Daily Semiconductor | ProShares UltraShort vs. MicroSectors Big Oil | ProShares UltraShort vs. Direxion Daily SP |
| DGAZ vs. ProShares Ultra Bloomberg | DGAZ vs. Direxion Daily Semiconductor | DGAZ vs. MicroSectors Big Oil | DGAZ vs. Direxion Daily SP |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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