Correlation Between VMware and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both VMware 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 VMware and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VMware Inc and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on VMware 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 VMware with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of VMware and ProShares Ultra.
Diversification Opportunities for VMware and ProShares Ultra
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VMware and ProShares is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc 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 VMware 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 VMware Inc 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 VMware i.e., VMware and ProShares Ultra go up and down completely randomly.
Pair Corralation between VMware and ProShares Ultra
If you would invest 1,372 in ProShares Ultra Bloomberg on January 25, 2024 and sell it today you would earn a total of 114.00 from holding ProShares Ultra Bloomberg or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
VMware Inc vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| VMware Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra Bloomberg |
VMware and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VMware and ProShares Ultra
The main advantage of trading using opposite VMware and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VMware 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 VMware Inc and ProShares Ultra Bloomberg 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.| ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. ProShares UltraShort Gold | ProShares Ultra vs. VanEck Junior 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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |