Correlation Between UGAZ and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both UGAZ 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 UGAZ and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGAZ and ProShares Ultra Gold, you can compare the effects of market volatilities on UGAZ 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 UGAZ with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGAZ and ProShares Ultra.
Diversification Opportunities for UGAZ and ProShares Ultra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UGAZ and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UGAZ and ProShares Ultra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Gold and UGAZ 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 UGAZ 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 Gold has no effect on the direction of UGAZ i.e., UGAZ and ProShares Ultra go up and down completely randomly.
Pair Corralation between UGAZ and ProShares Ultra
If you would invest 6,082 in ProShares Ultra Gold on January 20, 2024 and sell it today you would earn a total of 2,168 from holding ProShares Ultra Gold or generate 35.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UGAZ vs. ProShares Ultra Gold
Performance |
| Timeline |
| UGAZ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Gold |
UGAZ and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGAZ and ProShares Ultra
The main advantage of trading using opposite UGAZ and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGAZ 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.The idea behind UGAZ and ProShares Ultra Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ProShares Ultra vs. ProShares UltraShort Gold | ProShares Ultra vs. ProShares Ultra Silver | ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. DB Gold Double |
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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