Correlation Between IShares Silver and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both IShares Silver 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 IShares Silver and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares Silver Trust and ProShares Ultra Silver, you can compare the effects of market volatilities on IShares Silver 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 IShares Silver with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Silver and ProShares Ultra.
Diversification Opportunities for IShares Silver and ProShares Ultra
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and ProShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding IShares Silver Trust and ProShares Ultra Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Silver and IShares Silver 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 IShares Silver Trust 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 Silver has no effect on the direction of IShares Silver i.e., IShares Silver and ProShares Ultra go up and down completely randomly.
Pair Corralation between IShares Silver and ProShares Ultra
Considering the 90-day investment horizon IShares Silver is expected to generate 1.97 times less return on investment than ProShares Ultra. But when comparing it to its historical volatility, IShares Silver Trust is 2.06 times less risky than ProShares Ultra. It trades about 0.32 of its potential returns per unit of risk. ProShares Ultra Silver is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,366 in ProShares Ultra Silver on December 30, 2023 and sell it today you would earn a total of 508.00 from holding ProShares Ultra Silver or generate 21.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
IShares Silver Trust vs. ProShares Ultra Silver
Performance |
Timeline |
IShares Silver Trust |
ProShares Ultra Silver |
IShares Silver and ProShares Ultra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Silver and ProShares Ultra
The main advantage of trading using opposite IShares Silver and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Silver 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.IShares Silver vs. Direxion Daily Mid | IShares Silver vs. VanEck Egypt Index | IShares Silver vs. Invesco Aerospace Defense | IShares Silver vs. Invesco FTSE RAFI |
ProShares Ultra vs. MicroSectors Gold 3X | ProShares Ultra vs. Franklin Responsibly Sourced | ProShares Ultra vs. GraniteShares Gold Trust | ProShares Ultra vs. Invesco DB Precious |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Transaction History View history of all your transactions and understand their impact on performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |