Correlation Between UGLD and ProShares Ultra

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both UGLD 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 UGLD and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGLD and ProShares Ultra Silver, you can compare the effects of market volatilities on UGLD 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 UGLD with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGLD and ProShares Ultra.

Diversification Opportunities for UGLD and ProShares Ultra

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between UGLD and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UGLD 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 UGLD 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 UGLD 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 UGLD i.e., UGLD and ProShares Ultra go up and down completely randomly.

Pair Corralation between UGLD and ProShares Ultra

If you would invest  20,136  in UGLD on December 30, 2023 and sell it today you would earn a total of  0.00  from holding UGLD or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy40.73%
ValuesDaily Returns

UGLD  vs.  ProShares Ultra Silver

 Performance 
       Timeline  
UGLD 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days UGLD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, UGLD is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
ProShares Ultra Silver 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Silver are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in April 2024.

UGLD and ProShares Ultra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with UGLD and ProShares Ultra

The main advantage of trading using opposite UGLD and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGLD 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 UGLD and ProShares Ultra Silver 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.
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Stocks Directory
Find actively traded stocks across global markets
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume