Correlation Between ProShares Ultra and Etf Opportunities

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

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

Diversification Opportunities for ProShares Ultra and Etf Opportunities

0.08

Correlation Coefficient

ProShares Ultra  Etf Opportunities

Significant diversification

The 3 months correlation between ProShares and Etf is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra MSCI and Etf Opportunities Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etf Opportunities 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 MSCI are associated (or correlated) with Etf Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etf Opportunities Trust has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Etf Opportunities go up and down completely randomly.

Pair Corralation between ProShares Ultra and Etf Opportunities

Considering the 90-day investment horizon ProShares Ultra MSCI is expected to under-perform the Etf Opportunities. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra MSCI is 1.91 times less risky than Etf Opportunities. The etf trades about -0.2 of its potential returns per unit of risk. The Etf Opportunities Trust is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  3,060  in Etf Opportunities Trust on August 30, 2024 and sell it today you would lose (67.00) from holding Etf Opportunities Trust or give up 2.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

ProShares Ultra MSCI  vs.  Etf Opportunities Trust

ProShares Ultra MSCI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Ultra MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ProShares Ultra is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Etf Opportunities Trust

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Etf Opportunities Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Etf Opportunities is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Ultra and Etf Opportunities

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

The idea behind ProShares Ultra MSCI and Etf Opportunities 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.