Correlation Between Harbor Long and ProShares Ultra

Can any of the company-specific risk be diversified away by investing in both Harbor Long and ProShares Ultra 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 Harbor Long and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harbor Long Term Growers and ProShares Ultra Silver, you can compare the effects of market volatilities on Harbor Long and ProShares Ultra 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 Harbor Long with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Long and ProShares Ultra.

Diversification Opportunities for Harbor Long and ProShares Ultra

-0.37

Correlation Coefficient

Harbor Long  ProShares Ultra

Very good diversification

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

Pair Corralation between Harbor Long and ProShares Ultra

Given the investment horizon of 90 days Harbor Long Term Growers is expected to under-perform the ProShares Ultra. But the etf apears to be less risky and, when comparing its historical volatility, Harbor Long Term Growers is 2.03 times less risky than ProShares Ultra. The etf trades about -0.11 of its potential returns per unit of risk. The ProShares Ultra Silver is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,586  in ProShares Ultra Silver on December 21, 2024 and sell it today you would earn a total of  693.00  from holding ProShares Ultra Silver or generate 19.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Harbor Long Term Growers  vs.  ProShares Ultra Silver

Harbor Long Term

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harbor Long Term Growers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

ProShares Ultra Silver

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Silver are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, ProShares Ultra reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harbor Long and ProShares Ultra

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

The idea behind Harbor Long Term Growers and ProShares Ultra Silver 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.