ProShares UltraShort Correlations

TWM Etf

USD 50.16 0.89 1.74%

The current 90-days correlation between ProShares UltraShort and ProShares UltraShort MidCap400 is 0.95 (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

Excellent diversification

The correlation between ProShares UltraShort Russell20 and DJI is -0.6 (i.e., Excellent diversification) 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

0.82	SH	ProShares Short SP500	Pair Corr
0.7	SPXU	ProShares UltraPro Short	Pair Corr
0.71	SPXS	Direxion Daily SP Aggressive Push	Pair Corr
1.0	RWM	ProShares Short Russ	Pair Corr
0.83	SPDN	Direxion Daily SP	Pair Corr
0.71	DOG	ProShares Short Dow30	Pair Corr

Moving against ProShares Etf

0.84	AA	Alcoa Corp	Pair Corr
0.64	PFFL	ETRACS 2xMonthly Pay	Pair Corr
0.44	ULE	ProShares Ultra Euro	Pair Corr
0.38	SIXD	AIM ETF Products	Pair Corr
0.85	CAT	Caterpillar	Pair Corr
0.63	MSFT	Microsoft	Pair Corr
0.63	BAC	Bank of America	Pair Corr
0.61	DIS	Walt Disney	Pair Corr
0.42	DD	Dupont De Nemours	Pair Corr
0.42	TRV	The Travelers Companies	Pair Corr

Related Correlations Analysis

	MZZ	DXD	QID	SMN	SDD
MZZ		0.78	0.11	0.77	0.98	MZZ
DXD	0.78		0.22	0.89	0.7	DXD
QID	0.11	0.22		0.02	0.12	QID
SMN	0.77	0.89	0.02		0.7	SMN
SDD	0.98	0.7	0.12	0.7		SDD
	MZZ	DXD	QID	SMN	SDD

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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	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
MZZ	1.41	0.28	0.32	(0.27)	1.17	(1.60)	3.07	(2.19)	10.92
DXD	1.16	0.04	0.19	(0.11)	1.28	(1.28)	3.07	(2.36)	8.55
QID	1.88	0.12	0.08	0.13	2.07	(2.09)	4.35	(3.17)	11.77
SMN	1.35	0.21	0.24	(0.25)	1.40	(1.48)	2.66	(2.39)	9.73
SDD	1.51	0.36	0.36	(0.31)	1.13	(1.73)	3.71	(2.47)	11.16

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