Correlation Between US Commodity and ProShares Ultra

Specify exactly 2 symbols:
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 Gold, 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 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Gold 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 Gold 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  6,084  in ProShares Ultra Gold on December 29, 2023 and sell it today you would earn a total of  959.00  from holding ProShares Ultra Gold or generate 15.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

US Commodity Funds  vs.  ProShares Ultra Gold

 Performance 
       Timeline  
US Commodity Funds 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days US Commodity Funds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, US Commodity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
ProShares Ultra Gold 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Gold are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in April 2024.

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.
The idea behind US Commodity Funds 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.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Transaction History
View history of all your transactions and understand their impact on performance
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules