ProShares UltraShort Correlations

EWV Etf

USD 37.05 0.55 1.46%

The current 90-days correlation between ProShares UltraShort MSCI and ProShares UltraShort MSCI is 0.72 (i.e., Poor diversification). The correlation of ProShares UltraShort is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

ProShares UltraShort Correlation With Market

Excellent diversification

The correlation between ProShares UltraShort MSCI and DJI is -0.55 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort MSCI and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in ProShares UltraShort MSCI. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in housing.

Moving together with ProShares Etf

0.64

MSFT

Microsoft Aggressive Push

Pair Corr

Moving against ProShares Etf

0.93	VEA	Vanguard FTSE Developed	Pair Corr
0.87	GDXU	MicroSectors Gold Miners	Pair Corr
0.83	BND	Vanguard Total Bond	Pair Corr
0.53	RWM	ProShares Short Russ Potential Growth	Pair Corr
0.45	TAIL	Cambria Tail Risk	Pair Corr
0.43	PSQ	ProShares Short QQQ	Pair Corr
0.42	SH	ProShares Short SP500	Pair Corr
0.42	VTV	Vanguard Value Index	Pair Corr
0.39	QID	ProShares UltraShort QQQ	Pair Corr
0.39	SPDN	Direxion Daily SP	Pair Corr
0.34	SDS	ProShares UltraShort	Pair Corr
0.32	SPXU	ProShares UltraPro Short	Pair Corr
0.32	SPXS	Direxion Daily SP	Pair Corr
0.86	T	ATT Inc Aggressive Push	Pair Corr
0.8	JNJ	Johnson Johnson	Pair Corr
0.75	GE	GE Aerospace	Pair Corr
0.75	MCD	McDonalds	Pair Corr
0.75	KO	Coca Cola Sell-off Trend	Pair Corr
0.74	IBM	International Business	Pair Corr
0.64	XOM	Exxon Mobil Corp Earnings Call This Week	Pair Corr
0.55	CSCO	Cisco Systems	Pair Corr
0.53	PG	Procter Gamble	Pair Corr
0.41	DD	Dupont De Nemours	Pair Corr

Related Correlations Analysis

	EFU	EFZ	EEV	RXD	SDP
EFU		1.0	0.78	0.45	0.3	EFU
EFZ	1.0		0.78	0.45	0.31	EFZ
EEV	0.78	0.78		0.64	0.63	EEV
RXD	0.45	0.45	0.64		0.67	RXD
SDP	0.3	0.31	0.63	0.67		SDP
	EFU	EFZ	EEV	RXD	SDP

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ProShares UltraShort Constituents Risk-Adjusted Indicators

There is a big difference between ProShares Etf performing well and ProShares UltraShort ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze ProShares UltraShort's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
EFU	1.38	(0.30)	0.25	2.41	(3.64)	8.96
EFZ	0.68	(0.15)	0.24	1.12	(1.34)	4.31
EEV	1.61	(0.09)	0.09	3.77	(3.13)	10.63
RXD	1.37	(0.12)	0.11	2.35	(2.59)	6.89
SDP	1.67	(0.03)	0.04	4.28	(3.62)	9.89

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