Correlation Between SCOM and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both SCOM and ProShares UltraPro 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 SCOM and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOM and ProShares UltraPro Short, you can compare the effects of market volatilities on SCOM and ProShares UltraPro 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 SCOM with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOM and ProShares UltraPro.
Diversification Opportunities for SCOM and ProShares UltraPro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCOM and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCOM and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and SCOM 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 SCOM are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of SCOM i.e., SCOM and ProShares UltraPro go up and down completely randomly.
Pair Corralation between SCOM and ProShares UltraPro
If you would invest 3,270 in ProShares UltraPro Short on January 20, 2024 and sell it today you would earn a total of 437.00 from holding ProShares UltraPro Short or generate 13.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SCOM vs. ProShares UltraPro Short
Performance |
Timeline |
SCOM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraPro Short |
SCOM and ProShares UltraPro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SCOM and ProShares UltraPro
The main advantage of trading using opposite SCOM and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOM position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.SCOM vs. ProShares Ultra SP500 | SCOM vs. HUMANA INC | SCOM vs. Aquagold International | SCOM vs. Thrivent High Yield |
ProShares UltraPro vs. ProShares Ultra SP500 | ProShares UltraPro vs. HUMANA INC | ProShares UltraPro vs. Aquagold International | ProShares UltraPro vs. Thrivent High Yield |
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.
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