Correlation Between ProShares UltraShort and Arctic Star
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Arctic Star 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 UltraShort and Arctic Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort SmallCap600 and Arctic Star Exploration, you can compare the effects of market volatilities on ProShares UltraShort and Arctic Star 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 UltraShort with a short position of Arctic Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Arctic Star.
Diversification Opportunities for ProShares UltraShort and Arctic Star
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and Arctic is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort SmallCap6 and Arctic Star Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Star Exploration and ProShares UltraShort 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 UltraShort SmallCap600 are associated (or correlated) with Arctic Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Star Exploration has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Arctic Star go up and down completely randomly.
Pair Corralation between ProShares UltraShort and Arctic Star
Considering the 90-day investment horizon ProShares UltraShort SmallCap600 is expected to under-perform the Arctic Star. But the etf apears to be less risky and, when comparing its historical volatility, ProShares UltraShort SmallCap600 is 4.24 times less risky than Arctic Star. The etf trades about -0.01 of its potential returns per unit of risk. The Arctic Star Exploration is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.51 in Arctic Star Exploration on January 19, 2024 and sell it today you would earn a total of 0.30 from holding Arctic Star Exploration or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
ProShares UltraShort SmallCap6 vs. Arctic Star Exploration
Performance |
| Timeline |
| ProShares UltraShort |
| Arctic Star Exploration |
ProShares UltraShort and Arctic Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and Arctic Star
The main advantage of trading using opposite ProShares UltraShort and Arctic Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Arctic Star 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 Arctic Star will offset losses from the drop in Arctic Star's long position.| ProShares UltraShort vs. ProShares Ultra SP500 | ProShares UltraShort vs. HUMANA INC | ProShares UltraShort vs. Aquagold International | ProShares UltraShort vs. Thrivent High Yield |
| Arctic Star vs. Dynaresource | Arctic Star vs. Mexus Gold Us | Arctic Star vs. Northern Minerals Exploration | Arctic Star vs. Diamond Fields Resources |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |