Correlation Between ProShares UltraShort and Blackrock Silver

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Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Blackrock Silver 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 Blackrock Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort SP500 and Blackrock Silver Corp, you can compare the effects of market volatilities on ProShares UltraShort and Blackrock Silver 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 Blackrock Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Blackrock Silver.

Diversification Opportunities for ProShares UltraShort and Blackrock Silver

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between ProShares and Blackrock is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort SP500 and Blackrock Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Silver Corp 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 SP500 are associated (or correlated) with Blackrock Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Silver Corp has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Blackrock Silver go up and down completely randomly.

Pair Corralation between ProShares UltraShort and Blackrock Silver

Considering the 90-day investment horizon ProShares UltraShort SP500 is expected to under-perform the Blackrock Silver. But the etf apears to be less risky and, when comparing its historical volatility, ProShares UltraShort SP500 is 3.58 times less risky than Blackrock Silver. The etf trades about -0.22 of its potential returns per unit of risk. The Blackrock Silver Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Blackrock Silver Corp on December 29, 2023 and sell it today you would earn a total of  4.00  from holding Blackrock Silver Corp or generate 18.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ProShares UltraShort SP500  vs.  Blackrock Silver Corp

 Performance 
       Timeline  
ProShares UltraShort 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days ProShares UltraShort SP500 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2024. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.
Blackrock Silver Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Blackrock Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

ProShares UltraShort and Blackrock Silver Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ProShares UltraShort and Blackrock Silver

The main advantage of trading using opposite ProShares UltraShort and Blackrock Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Blackrock Silver 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 Blackrock Silver will offset losses from the drop in Blackrock Silver's long position.
The idea behind ProShares UltraShort SP500 and Blackrock Silver Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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