Correlation Between ProShares Ultra and DDG
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and DDG 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 Ultra and DDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Bloomberg and DDG, you can compare the effects of market volatilities on ProShares Ultra and DDG 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 Ultra with a short position of DDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and DDG.
Diversification Opportunities for ProShares Ultra and DDG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and DDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Bloomberg and DDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DDG and ProShares Ultra 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 Ultra Bloomberg are associated (or correlated) with DDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DDG has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and DDG go up and down completely randomly.
Pair Corralation between ProShares Ultra and DDG
If you would invest 4,503 in ProShares Ultra Bloomberg on January 26, 2024 and sell it today you would lose (1,130) from holding ProShares Ultra Bloomberg or give up 25.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Ultra Bloomberg vs. DDG
Performance |
| Timeline |
| ProShares Ultra Bloomberg |
| DDG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra and DDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and DDG
The main advantage of trading using opposite ProShares Ultra and DDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, DDG 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 DDG will offset losses from the drop in DDG's long position.| ProShares Ultra vs. ProShares UltraShort Bloomberg | ProShares Ultra vs. United States Oil | ProShares Ultra vs. Direxion Daily Energy | ProShares Ultra 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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