Correlation Between ProShares Ultra and AGFiQ Market

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and AGFiQ Market 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 ProShares Ultra and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Ultra Technology and AGFiQ Market Neutral, you can compare the effects of market volatilities on ProShares Ultra and AGFiQ Market 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 ProShares Ultra with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and AGFiQ Market.

Diversification Opportunities for ProShares Ultra and AGFiQ Market

-0.53

Correlation Coefficient

ProShares Ultra  AGFiQ Market

Excellent diversification

The 3 months correlation between ProShares and AGFiQ is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Technology and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and ProShares Ultra 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 ProShares Ultra Technology are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and AGFiQ Market go up and down completely randomly.

Pair Corralation between ProShares Ultra and AGFiQ Market

Considering the 90-day investment horizon ProShares Ultra is expected to generate 1.06 times less return on investment than AGFiQ Market. In addition to that, ProShares Ultra is 2.58 times more volatile than AGFiQ Market Neutral. It trades about 0.06 of its total potential returns per unit of risk. AGFiQ Market Neutral is currently generating about 0.17 per unit of volatility. If you would invest  1,802  in AGFiQ Market Neutral on February 27, 2024 and sell it today you would earn a total of  115.00  from holding AGFiQ Market Neutral or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ProShares Ultra Technology  vs.  AGFiQ Market Neutral

ProShares Ultra Tech

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in June 2024.

AGFiQ Market Neutral

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGFiQ Market Neutral are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, AGFiQ Market is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ProShares Ultra and AGFiQ Market

The main advantage of trading using opposite ProShares Ultra and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.

The idea behind ProShares Ultra Technology and AGFiQ Market Neutral 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.