Correlation Between US Commodity and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both US Commodity 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 US Commodity and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Commodity Funds and ProShares Ultra Silver, you can compare the effects of market volatilities on US Commodity 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 US Commodity with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Commodity and ProShares Ultra.
Diversification Opportunities for US Commodity and ProShares Ultra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USOU and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Commodity Funds 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 US Commodity 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 US Commodity Funds 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 US Commodity i.e., US Commodity and ProShares Ultra go up and down completely randomly.
Pair Corralation between US Commodity and ProShares Ultra
If you would invest 2,775 in ProShares Ultra Silver on January 26, 2024 and sell it today you would earn a total of 621.00 from holding ProShares Ultra Silver or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Commodity Funds vs. ProShares Ultra Silver
Performance |
| Timeline |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Silver |
US Commodity and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Commodity and ProShares Ultra
The main advantage of trading using opposite US Commodity and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Commodity 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.| US Commodity vs. Zillow Group Class | US Commodity vs. Northern Lights | US Commodity vs. VanEck Vectors Moodys | US Commodity vs. BZDYF |
| ProShares Ultra vs. ProShares Ultra Gold | ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. DB Gold Double | ProShares Ultra vs. ProShares UltraShort Gold |
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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