Correlation Between PROSHARES ULTRASHORT and Zillow Group

Can any of the company-specific risk be diversified away by investing in both PROSHARES ULTRASHORT and Zillow Group 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 ULTRASHORT and Zillow Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PROSHARES ULTRASHORT RUSSELL and Zillow Group Class, you can compare the effects of market volatilities on PROSHARES ULTRASHORT and Zillow Group 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 ULTRASHORT with a short position of Zillow Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSHARES ULTRASHORT and Zillow Group.

Diversification Opportunities for PROSHARES ULTRASHORT and Zillow Group

-0.37

Correlation Coefficient

PROSHARES ULTRASHORT  Zillow Group

Very good diversification

The 3 months correlation between PROSHARES and Zillow is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PROSHARES ULTRASHORT RUSSELL and Zillow Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zillow Group Class and PROSHARES ULTRASHORT 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 ULTRASHORT RUSSELL are associated (or correlated) with Zillow Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zillow Group Class has no effect on the direction of PROSHARES ULTRASHORT i.e., PROSHARES ULTRASHORT and Zillow Group go up and down completely randomly.

Pair Corralation between PROSHARES ULTRASHORT and Zillow Group

Considering the 90-day investment horizon PROSHARES ULTRASHORT RUSSELL is expected to under-perform the Zillow Group. In addition to that, PROSHARES ULTRASHORT is 5.2 times more volatile than Zillow Group Class. It trades about -0.08 of its total potential returns per unit of risk. Zillow Group Class is currently generating about 0.07 per unit of volatility. If you would invest  6,552  in Zillow Group Class on September 21, 2024 and sell it today you would earn a total of  917.00  from holding Zillow Group Class or generate 14.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.13%
Values	Daily Returns

PROSHARES ULTRASHORT RUSSELL  vs.  Zillow Group Class

PROSHARES ULTRASHORT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PROSHARES ULTRASHORT RUSSELL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Etf's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Zillow Group Class

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zillow Group Class are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Zillow Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PROSHARES ULTRASHORT and Zillow Group

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

The idea behind PROSHARES ULTRASHORT RUSSELL and Zillow Group Class 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.

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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.