Correlation Between MLPQ and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both MLPQ 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 MLPQ and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MLPQ and ProShares Ultra SP500, you can compare the effects of market volatilities on MLPQ 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 MLPQ with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of MLPQ and ProShares Ultra.
Diversification Opportunities for MLPQ and ProShares Ultra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MLPQ and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MLPQ and ProShares Ultra SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra SP500 and MLPQ 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 MLPQ 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 SP500 has no effect on the direction of MLPQ i.e., MLPQ and ProShares Ultra go up and down completely randomly.
Pair Corralation between MLPQ and ProShares Ultra
If you would invest 5,058 in ProShares Ultra SP500 on January 17, 2024 and sell it today you would earn a total of 2,123 from holding ProShares Ultra SP500 or generate 41.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MLPQ vs. ProShares Ultra SP500
Performance |
| Timeline |
| MLPQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Ultra SP500 |
MLPQ and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MLPQ and ProShares Ultra
The main advantage of trading using opposite MLPQ and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MLPQ 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.| MLPQ vs. Vanguard Total Stock | MLPQ vs. SPDR SP 500 | MLPQ vs. iShares Core SP | MLPQ vs. Vanguard Total Bond |
| ProShares Ultra vs. ProShares Ultra QQQ | ProShares Ultra vs. ProShares Ultra Dow30 | ProShares Ultra vs. ProShares UltraShort SP500 | ProShares Ultra vs. ProShares Ultra Financials |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |