Correlation Between ProShares Ultra and Listed Funds

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Listed Funds 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 Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Ultra Yen and Listed Funds Trust, you can compare the effects of market volatilities on ProShares Ultra and Listed Funds 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Listed Funds.

Diversification Opportunities for ProShares Ultra and Listed Funds

-0.88

Correlation Coefficient

ProShares Ultra  Listed Funds

Pay attention - limited upside

The 3 months correlation between ProShares and Listed is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust 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 Yen are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Listed Funds go up and down completely randomly.

Pair Corralation between ProShares Ultra and Listed Funds

Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Listed Funds. In addition to that, ProShares Ultra is 17.23 times more volatile than Listed Funds Trust. It trades about -0.07 of its total potential returns per unit of risk. Listed Funds Trust is currently generating about 0.21 per unit of volatility. If you would invest  2,497  in Listed Funds Trust on February 3, 2024 and sell it today you would earn a total of  11.00  from holding Listed Funds Trust or generate 0.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ProShares Ultra Yen  vs.  Listed Funds Trust

ProShares Ultra Yen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Ultra Yen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

Listed Funds Trust

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Listed Funds Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Listed Funds is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Ultra and Listed Funds

The main advantage of trading using opposite ProShares Ultra and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.

The idea behind ProShares Ultra Yen and Listed Funds Trust 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.