Correlation Between ProShares Ultra and DoubleVerify Holdings
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and DoubleVerify Holdings 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 Ultra and DoubleVerify Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Semiconductors and DoubleVerify Holdings, you can compare the effects of market volatilities on ProShares Ultra and DoubleVerify Holdings 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 Ultra with a short position of DoubleVerify Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and DoubleVerify Holdings.
Diversification Opportunities for ProShares Ultra and DoubleVerify Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and DoubleVerify is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and DoubleVerify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleVerify Holdings and ProShares Ultra 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 Ultra Semiconductors are associated (or correlated) with DoubleVerify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleVerify Holdings has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and DoubleVerify Holdings go up and down completely randomly.
Pair Corralation between ProShares Ultra and DoubleVerify Holdings
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 0.85 times more return on investment than DoubleVerify Holdings. However, ProShares Ultra Semiconductors is 1.18 times less risky than DoubleVerify Holdings. It trades about 0.08 of its potential returns per unit of risk. DoubleVerify Holdings is currently generating about -0.17 per unit of risk. If you would invest 7,775 in ProShares Ultra Semiconductors on February 12, 2024 and sell it today you would earn a total of 1,518 from holding ProShares Ultra Semiconductors or generate 19.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ProShares Ultra Semiconductors vs. DoubleVerify Holdings
Performance |
Timeline |
ProShares Ultra Semi |
DoubleVerify Holdings |
ProShares Ultra and DoubleVerify Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Ultra and DoubleVerify Holdings
The main advantage of trading using opposite ProShares Ultra and DoubleVerify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, DoubleVerify Holdings 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 DoubleVerify Holdings will offset losses from the drop in DoubleVerify Holdings' long position.ProShares Ultra vs. ProShares Ultra Technology | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Basic | ProShares Ultra vs. ProShares Ultra Health |
DoubleVerify Holdings vs. Asure Software | DoubleVerify Holdings vs. ADEIA P | DoubleVerify Holdings vs. Paycor HCM | DoubleVerify Holdings vs. Agilysys |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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