Proshares Ultrapro Short Etf Volatility
| SQQQ Etf | USD 12.07 0.21 1.77% |
We consider ProShares UltraPro somewhat reliable. ProShares UltraPro Short maintains Sharpe Ratio (i.e., Efficiency) of 0.0106, which implies the entity had a 0.0106% return per unit of risk over the last 3 months. We have found twenty-four technical indicators for ProShares UltraPro Short, which you can use to evaluate the volatility of the etf. Please check ProShares UltraPro's Coefficient Of Variation of (3,005), variance of 9.13, and Risk Adjusted Performance of (0.01) to confirm if the risk estimate we provide is consistent with the expected return of 0.0313%. Key indicators related to ProShares UltraPro's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
ProShares UltraPro Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of ProShares daily returns, and it is calculated using variance and standard deviation. We also use ProShares's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ProShares UltraPro volatility.
ProShares |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ProShares UltraPro can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of ProShares UltraPro at lower prices. For example, an investor can purchase ProShares stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of ProShares UltraPro's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with ProShares Etf
| 0.89 | SH | ProShares Short SP500 Aggressive Push | PairCorr |
| 0.89 | SPXU | ProShares UltraPro Short | PairCorr |
| 0.91 | SDS | ProShares UltraShort | PairCorr |
| 0.94 | SPXS | Direxion Daily SP Aggressive Push | PairCorr |
| 1.0 | QID | ProShares UltraShort QQQ | PairCorr |
| 0.77 | RWM | ProShares Short Russ | PairCorr |
| 0.97 | SPDN | Direxion Daily SP | PairCorr |
| 0.68 | TAIL | Cambria Tail Risk Low Volatility | PairCorr |
Moving against ProShares Etf
| 0.89 | ARKW | ARK Next Generation | PairCorr |
| 0.78 | BST | BlackRock Science Tech | PairCorr |
| 0.77 | EWC | iShares MSCI Canada | PairCorr |
| 0.75 | WTMF | WisdomTree Managed | PairCorr |
| 0.57 | OIH | VanEck Oil Services | PairCorr |
| 0.56 | MRK | Merck Company Earnings Call This Week | PairCorr |
| 0.43 | IAUF | iShares Gold Strategy | PairCorr |
ProShares UltraPro Market Sensitivity And Downside Risk
ProShares UltraPro's beta coefficient measures the volatility of ProShares etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents ProShares etf's returns against your selected market. In other words, ProShares UltraPro's beta of -3.32 provides an investor with an approximation of how much risk ProShares UltraPro etf can potentially add to one of your existing portfolios. ProShares UltraPro Short exhibits very low volatility with skewness of -0.23 and kurtosis of -0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ProShares UltraPro's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ProShares UltraPro's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze ProShares UltraPro Short Demand TrendCheck current 90 days ProShares UltraPro correlation with market (NYSE Composite)ProShares Beta |
ProShares standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.95 |
It is essential to understand the difference between upside risk (as represented by ProShares UltraPro's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ProShares UltraPro's daily returns or price. Since the actual investment returns on holding a position in proshares etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in ProShares UltraPro.
Using ProShares Put Option to Manage Risk
Put options written on ProShares UltraPro grant holders of the option the right to sell a specified amount of ProShares UltraPro at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of ProShares Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge ProShares UltraPro's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding ProShares UltraPro will be realized, the loss incurred will be offset by the profits made with the option trade.
ProShares UltraPro's PUT expiring on 2024-04-19
Profit |
| ProShares UltraPro Price At Expiration |
Current ProShares UltraPro Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $17.0 | -0.806 | 0.0685 | 41 | 2024-04-19 | 4.55 - 5.3 | 6.25 | View |
Put | 2024-04-19 PUT at $16.0 | -0.8057 | 0.0811 | 6 | 2024-04-19 | 3.55 - 4.3 | 4.25 | View |
Put | 2024-04-19 PUT at $15.0 | -0.8693 | 0.0982 | 1 | 2024-04-19 | 2.27 - 3.85 | 3.58 | View |
Put | 2024-04-19 PUT at $14.5 | -0.9434 | 0.0845 | 4 | 2024-04-19 | 2.06 - 2.86 | 3.16 | View |
Put | 2024-04-19 PUT at $14.0 | -0.91 | 0.1266 | 136 | 2024-04-19 | 1.5 - 2.9 | 1.98 | View |
Put | 2024-04-19 PUT at $13.5 | -0.7405 | 0.1734 | 41 | 2024-04-19 | 1.08 - 1.84 | 1.7 | View |
Put | 2024-04-19 PUT at $13.0 | -0.9226 | 0.2352 | 158 | 2024-04-19 | 0.73 - 1.3 | 0.95 | View |
Put | 2024-04-19 PUT at $12.5 | -0.8042 | 0.5756 | 978 | 2024-04-19 | 0.45 - 0.48 | 0.48 | View |
Put | 2024-04-19 PUT at $12.0 | -0.424 | 0.9547 | 2275 | 2024-04-19 | 0.12 - 0.14 | 0.13 | View |
Put | 2024-04-19 PUT at $11.5 | -0.1188 | 0.3936 | 8421 | 2024-04-19 | 0.02 - 0.03 | 0.03 | View |
Put | 2024-04-19 PUT at $11.0 | -0.0381 | 0.1289 | 14784 | 2024-04-19 | 0.0 - 0.01 | 0.01 | View |
ProShares UltraPro Short Etf Volatility Analysis
Volatility refers to the frequency at which ProShares UltraPro etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ProShares UltraPro's price changes. Investors will then calculate the volatility of ProShares UltraPro's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of ProShares UltraPro's volatility:
Historical Volatility
This type of etf volatility measures ProShares UltraPro's fluctuations based on previous trends. It's commonly used to predict ProShares UltraPro's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for ProShares UltraPro's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on ProShares UltraPro's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. ProShares UltraPro Short Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
ProShares UltraPro Projected Return Density Against Market
Given the investment horizon of 90 days ProShares UltraPro Short has a beta of -3.3195 . This usually implies as returns on its benchmark rise, returns on holding ProShares UltraPro Short are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, ProShares UltraPro is expected to outperform its benchmark.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ProShares UltraPro or ProShares sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ProShares UltraPro's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ProShares etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
ProShares UltraPro Short has an alpha of 0.084, implying that it can generate a 0.084 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a ProShares UltraPro Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.ProShares UltraPro Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of ProShares UltraPro is 9437.42. The daily returns are distributed with a variance of 8.7 and standard deviation of 2.95. The mean deviation of ProShares UltraPro Short is currently at 2.29. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.08 | |
β | Beta against NYSE Composite | -3.32 | |
σ | Overall volatility | 2.95 | |
Ir | Information ratio | -0.06 |
ProShares UltraPro Etf Return Volatility
ProShares UltraPro historical daily return volatility represents how much of ProShares UltraPro etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 2.95% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About ProShares UltraPro Volatility
Volatility is a rate at which the price of ProShares UltraPro or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ProShares UltraPro may increase or decrease. In other words, similar to ProShares's beta indicator, it measures the risk of ProShares UltraPro and helps estimate the fluctuations that may happen in a short period of time. So if prices of ProShares UltraPro fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. Ultrapro Short is traded on NASDAQ Exchange in the United States.
ProShares UltraPro's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on ProShares Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ProShares UltraPro's price varies over time.
3 ways to utilize ProShares UltraPro's volatility to invest better
Higher ProShares UltraPro's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ProShares UltraPro Short etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. ProShares UltraPro Short etf volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of ProShares UltraPro Short investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ProShares UltraPro's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of ProShares UltraPro's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ProShares UltraPro Investment Opportunity
ProShares UltraPro Short has a volatility of 2.95 and is 4.76 times more volatile than NYSE Composite. 26 percent of all equities and portfolios are less risky than ProShares UltraPro. You can use ProShares UltraPro Short to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of ProShares UltraPro to be traded at $13.28 in 90 days.Excellent diversification
The correlation between ProShares UltraPro Short and NYA is -0.68 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro Short and NYA in the same portfolio, assuming nothing else is changed.
ProShares UltraPro Additional Risk Indicators
The analysis of ProShares UltraPro's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in ProShares UltraPro's investment and either accepting that risk or mitigating it. Along with some common measures of ProShares UltraPro etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | 0.0433 | |||
| Mean Deviation | 2.37 | |||
| Coefficient Of Variation | (3,005) | |||
| Standard Deviation | 3.02 | |||
| Variance | 9.13 | |||
| Information Ratio | (0.06) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
ProShares UltraPro Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against ProShares UltraPro as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. ProShares UltraPro's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, ProShares UltraPro's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to ProShares UltraPro Short.
When determining whether ProShares UltraPro Short is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if ProShares Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Proshares Ultrapro Short Etf. Highlighted below are key reports to facilitate an investment decision about Proshares Ultrapro Short Etf: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares UltraPro Short. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
The market value of ProShares UltraPro Short is measured differently than its book value, which is the value of ProShares that is recorded on the company's balance sheet. Investors also form their own opinion of ProShares UltraPro's value that differs from its market value or its book value, called intrinsic value, which is ProShares UltraPro's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ProShares UltraPro's market value can be influenced by many factors that don't directly affect ProShares UltraPro's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ProShares UltraPro's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProShares UltraPro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProShares UltraPro's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.