Correlation Between Series Portfolios and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Series Portfolios and ProShares Ultra 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 Series Portfolios and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Series Portfolios Trust and ProShares Ultra SmallCap600, you can compare the effects of market volatilities on Series Portfolios and ProShares Ultra 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 Series Portfolios with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and ProShares Ultra.
Diversification Opportunities for Series Portfolios and ProShares Ultra
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Series and ProShares is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and ProShares Ultra SmallCap600 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Smal and Series Portfolios 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 Series Portfolios Trust are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Smal has no effect on the direction of Series Portfolios i.e., Series Portfolios and ProShares Ultra go up and down completely randomly.
Pair Corralation between Series Portfolios and ProShares Ultra
Given the investment horizon of 90 days Series Portfolios Trust is expected to generate 0.35 times more return on investment than ProShares Ultra. However, Series Portfolios Trust is 2.84 times less risky than ProShares Ultra. It trades about 0.12 of its potential returns per unit of risk. ProShares Ultra SmallCap600 is currently generating about 0.01 per unit of risk. If you would invest 2,954 in Series Portfolios Trust on January 26, 2024 and sell it today you would earn a total of 320.00 from holding Series Portfolios Trust or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 18.59% |
| Values | Daily Returns |
Series Portfolios Trust vs. ProShares Ultra SmallCap600
Performance |
| Timeline |
| Series Portfolios Trust |
| ProShares Ultra Smal |
Series Portfolios and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Series Portfolios and ProShares Ultra
The main advantage of trading using opposite Series Portfolios and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| Series Portfolios vs. OShares Quality Dividend | Series Portfolios vs. OShares Europe Quality | Series Portfolios vs. OShares Global Internet | Series Portfolios vs. ProShares SP MidCap |
| ProShares Ultra vs. ProShares Ultra MidCap400 | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Consumer |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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