Correlation Between SharkNinja and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both SharkNinja and ProShares UltraShort 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 SharkNinja and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SharkNinja and ProShares UltraShort Utilities, you can compare the effects of market volatilities on SharkNinja and ProShares UltraShort 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 SharkNinja with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of SharkNinja and ProShares UltraShort.
Diversification Opportunities for SharkNinja and ProShares UltraShort
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SharkNinja and ProShares is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding SharkNinja and ProShares UltraShort Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and SharkNinja 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 SharkNinja are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of SharkNinja i.e., SharkNinja and ProShares UltraShort go up and down completely randomly.
Pair Corralation between SharkNinja and ProShares UltraShort
Allowing for the 90-day total investment horizon SharkNinja is expected to generate 0.81 times more return on investment than ProShares UltraShort. However, SharkNinja is 1.23 times less risky than ProShares UltraShort. It trades about 0.37 of its potential returns per unit of risk. ProShares UltraShort Utilities is currently generating about -0.29 per unit of risk. If you would invest 5,079 in SharkNinja on February 13, 2024 and sell it today you would earn a total of 2,105 from holding SharkNinja or generate 41.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SharkNinja vs. ProShares UltraShort Utilities
Performance |
| Timeline |
| SharkNinja |
| ProShares UltraShort |
SharkNinja and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SharkNinja and ProShares UltraShort
The main advantage of trading using opposite SharkNinja and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SharkNinja position performs unexpectedly, ProShares UltraShort 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 UltraShort will offset losses from the drop in ProShares UltraShort's long position.| SharkNinja vs. El Pollo Loco | SharkNinja vs. Chanson International Holding | SharkNinja vs. Shake Shack | SharkNinja vs. The Wendys Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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