Correlation Between ProShares UltraShort and Japan 2x
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and Japan 2x 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 Japan 2x 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 Japan 2x Strategy, you can compare the effects of market volatilities on ProShares UltraShort and Japan 2x 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 Japan 2x. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Japan 2x.
Diversification Opportunities for ProShares UltraShort and Japan 2x
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Japan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort SP500 and JAPAN 2X STRATEGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan 2x Strategy 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 Japan 2x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan 2x Strategy has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Japan 2x go up and down completely randomly.
Pair Corralation between ProShares UltraShort and Japan 2x
If you would invest (100.00) in Japan 2x Strategy on December 29, 2023 and sell it today you would earn a total of 100.00 from holding Japan 2x Strategy or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ProShares UltraShort SP500 vs. JAPAN 2X STRATEGY
Performance |
Timeline |
ProShares UltraShort |
Japan 2x Strategy |
Risk-Adjusted Performance
0 of 100
Low | High |
Good
ProShares UltraShort and Japan 2x Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares UltraShort and Japan 2x
The main advantage of trading using opposite ProShares UltraShort and Japan 2x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, Japan 2x 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 Japan 2x will offset losses from the drop in Japan 2x's long position.ProShares UltraShort vs. Northern Lights | ProShares UltraShort vs. Dimensional International High | ProShares UltraShort vs. First Trust Exchange Traded | ProShares UltraShort vs. EA Series Trust |
Japan 2x vs. Fs Managed Futures | Japan 2x vs. Short Duration Inflation | Japan 2x vs. Rational Inflation Growth | Japan 2x vs. Guidepath Managed Futures |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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