Pair Correlation Between VelocityShares 3x and ProShares Ultra

This module allows you to analyze existing cross correlation between VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER and ProShares Ultra Silver. You can compare the effects of market volatilities on VelocityShares 3x 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 VelocityShares 3x with a short position of ProShares Ultra. See also your portfolio center. Please also check ongoing floating volatility patterns of VelocityShares 3x and ProShares Ultra.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 VelocityShares 3x Long Crude O  vs   ProShares Ultra Silver
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER is expected to generate 2.38 times more return on investment than ProShares Ultra. However, VelocityShares 3x is 2.38 times more volatile than ProShares Ultra Silver. It trades about 0.06 of its potential returns per unit of risk. ProShares Ultra Silver is currently generating about 0.02 per unit of risk. If you would invest  1,577  in VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER on September 21, 2017 and sell it today you would earn a total of  64  from holding VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER or generate 4.06% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between VelocityShares 3x and ProShares Ultra
0.26

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding VelocityShares 3x Long Crude O 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 VelocityShares 3x 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 VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER 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 VelocityShares 3x i.e. VelocityShares 3x and ProShares Ultra go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

VelocityShares 3x Long

  
4 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.

ProShares Ultra Silver

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Silver are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.