Correlation Between United States and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Oil and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on United States 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 United States with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and ProShares Ultra.
Diversification Opportunities for United States and ProShares Ultra
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and ProShares is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding United States Oil and ProShares Ultra Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloomberg and United States 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 United States Oil 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 Bloomberg has no effect on the direction of United States i.e., United States and ProShares Ultra go up and down completely randomly.
Pair Corralation between United States and ProShares Ultra
Considering the 90-day investment horizon United States Oil is expected to generate 0.19 times more return on investment than ProShares Ultra. However, United States Oil is 5.16 times less risky than ProShares Ultra. It trades about 0.14 of its potential returns per unit of risk. ProShares Ultra Bloomberg is currently generating about 0.02 per unit of risk. If you would invest 7,729 in United States Oil on January 26, 2024 and sell it today you would earn a total of 235.00 from holding United States Oil or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
United States Oil vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| United States Oil |
| ProShares Ultra Bloomberg |
United States and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and ProShares Ultra
The main advantage of trading using opposite United States and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
| ProShares Ultra vs. ProShares Short SP500 | ProShares Ultra vs. ProShares Metaverse ETF | ProShares Ultra vs. ProShares VIX Mid Term | ProShares Ultra vs. ProShares VIX Short Term |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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