ProShares UltraShort Correlations

TWM Etf  USD 50.06  0.57  1.15%   
The current 90-days correlation between ProShares UltraShort and ProShares UltraShort MidCap400 is 0.96 (i.e., Almost no diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ProShares UltraShort moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ProShares UltraShort Russell2000 moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

ProShares UltraShort Correlation With Market

Pay attention - limited upside

The correlation between ProShares UltraShort Russell20 and DJI is -0.82 (i.e., Pay attention - limited upside) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Russell20 and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares UltraShort Russell2000. 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

  0.86SH ProShares Short SP500PairCorr
  0.92PSQ ProShares Short QQQPairCorr
  0.92SPXU ProShares UltraPro ShortPairCorr
  0.92SDS ProShares UltraShortPairCorr
  0.92SPXS Direxion Daily SP Buyout TrendPairCorr
  0.92QID ProShares UltraShort QQQPairCorr
  0.97RWM ProShares Short RussPairCorr
  0.93SPDN Direxion Daily SPPairCorr
  0.94TAIL Cambria Tail RiskPairCorr
  0.86DOG ProShares Short Dow30PairCorr
  0.63BND Vanguard Total Bond Sell-off TrendPairCorr
  0.61KO Coca Cola Aggressive PushPairCorr

Moving against ProShares Etf

  0.93VB Vanguard Small CapPairCorr
  0.88VTI Vanguard Total StockPairCorr
  0.88VO Vanguard Mid CapPairCorr
  0.86SPY SPDR SP 500PairCorr
  0.84VUG Vanguard Growth IndexPairCorr
  0.79IVV iShares Core SPPairCorr
  0.41VTV Vanguard Value IndexPairCorr
  0.92AXP American ExpressPairCorr
  0.74HPQ HP IncPairCorr
  0.74JPM JPMorgan Chase Sell-off TrendPairCorr
  0.7CAT CaterpillarPairCorr
  0.67DIS Walt DisneyPairCorr
  0.63MSFT MicrosoftPairCorr
  0.59AA Alcoa CorpPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
JPMMETA
CRMMSFT
CRMA
TUBER
AMSFT
JPMA
  
High negative correlations   
MRKUBER
TMSFT
CRMT
MRKMETA
AT
XOMCRM

ProShares UltraShort Competition 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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
META  1.61  0.05  0.02  0.04  2.24 
 2.96 
 8.90 
MSFT  1.07 (0.17) 0.00 (0.20) 0.00 
 2.58 
 10.31 
UBER  1.92  0.31  0.14  0.48  2.11 
 4.72 
 12.75 
F  1.44  0.11  0.05 (0.36) 2.16 
 2.71 
 10.14 
T  0.99  0.29  0.17 (24.36) 1.45 
 1.90 
 11.66 
A  1.13 (0.15) 0.00 (0.15) 0.00 
 2.92 
 9.03 
CRM  1.38 (0.27) 0.00 (0.22) 0.00 
 2.72 
 8.88 
JPM  1.09  0.14  0.08  0.11  1.55 
 2.16 
 6.85 
MRK  1.22 (0.15) 0.00  1.32  0.00 
 2.07 
 11.58 
XOM  1.02  0.17  0.12  0.40  1.24 
 2.55 
 5.89