Correlation Between ProShares Ultra and IShares Real
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and IShares Real 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 IShares Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Semiconductors and iShares Real Estate, you can compare the effects of market volatilities on ProShares Ultra and IShares Real 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 IShares Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and IShares Real.
Diversification Opportunities for ProShares Ultra and IShares Real
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and IShares is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and iShares Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Real Estate 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 Semiconductors are associated (or correlated) with IShares Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Real Estate has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and IShares Real go up and down completely randomly.
Pair Corralation between ProShares Ultra and IShares Real
Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to under-perform the IShares Real. In addition to that, ProShares Ultra is 6.06 times more volatile than iShares Real Estate. It trades about -0.09 of its total potential returns per unit of risk. iShares Real Estate is currently generating about 0.05 per unit of volatility. If you would invest 9,194 in iShares Real Estate on December 29, 2024 and sell it today you would earn a total of 280.00 from holding iShares Real Estate or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ProShares Ultra Semiconductors vs. iShares Real Estate
Performance |
Timeline |
ProShares Ultra Semi |
iShares Real Estate |
ProShares Ultra and IShares Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Ultra and IShares Real
The main advantage of trading using opposite ProShares Ultra and IShares Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, IShares Real 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 IShares Real will offset losses from the drop in IShares Real's long position.ProShares Ultra vs. ProShares Ultra Technology | ProShares Ultra vs. ProShares Ultra Industrials | ProShares Ultra vs. ProShares Ultra Basic | ProShares Ultra vs. ProShares Ultra Health |
IShares Real vs. iShares Cohen Steers | IShares Real vs. iShares Basic Materials | IShares Real vs. SPDR Dow Jones | IShares Real vs. iShares Telecommunications ETF |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |