Proshares Ultrashort Consumer Etf Volatility
ProShares UltraShort appears to be somewhat reliable, given 3 months investment horizon. ProShares UltraShort maintains Sharpe Ratio (i.e., Efficiency) of 0.17, which implies the entity had a 0.17 % return per unit of risk over the last 3 months. We have found twenty-one technical indicators for ProShares UltraShort, which you can use to evaluate the volatility of the etf. Please evaluate ProShares UltraShort's Risk Adjusted Performance of 0.1499, coefficient of variation of 591.1, and Semi Deviation of 2.54 to confirm if our risk estimates are consistent with your expectations.
ProShares |
ProShares UltraShort Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of ProShares daily returns, and it is calculated using variance and standard deviation. We also use ProShares's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ProShares UltraShort volatility.
ProShares UltraShort Etf Volatility Analysis
Volatility refers to the frequency at which ProShares UltraShort etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ProShares UltraShort's price changes. Investors will then calculate the volatility of ProShares UltraShort's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of ProShares UltraShort's volatility:
Historical Volatility
This type of etf volatility measures ProShares UltraShort's fluctuations based on previous trends. It's commonly used to predict ProShares UltraShort's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for ProShares UltraShort's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on ProShares UltraShort's to be redeemed at a future date.Transformation |
We are not able to run technical analysis function on this symbol. We either do not have that equity or its historical data is not available at this time. Please try again later.
ProShares UltraShort Projected Return Density Against Market
Considering the 90-day investment horizon ProShares UltraShort Consumer has a beta of -2.5383 . This usually implies as returns on its benchmark rise, returns on holding ProShares UltraShort Consumer are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, ProShares UltraShort is expected to outperform its benchmark.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ProShares UltraShort or ProShares sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ProShares UltraShort's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ProShares etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
ProShares UltraShort Consumer has an alpha of 0.4614, implying that it can generate a 0.46 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a ProShares UltraShort Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.ProShares UltraShort Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of ProShares UltraShort is 591.1. The daily returns are distributed with a variance of 7.97 and standard deviation of 2.82. The mean deviation of ProShares UltraShort Consumer is currently at 2.17. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.46 | |
β | Beta against Dow Jones | -2.54 | |
σ | Overall volatility | 2.82 | |
Ir | Information ratio | 0.17 |
ProShares UltraShort Etf Return Volatility
ProShares UltraShort historical daily return volatility represents how much of ProShares UltraShort etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 2.8234% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8574% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
ProShares UltraShort Investment Opportunity
ProShares UltraShort Consumer has a volatility of 2.82 and is 3.28 times more volatile than Dow Jones Industrial. 25 percent of all equities and portfolios are less risky than ProShares UltraShort. You can use ProShares UltraShort Consumer to enhance the returns of your portfolios. The etf experiences an unexpected upward trend. Watch out for market signals. Check odds of ProShares UltraShort to be traded at $13.27 in 90 days.Pay attention - limited upside
The correlation between ProShares UltraShort Consumer and DJI is -0.78 (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 Consumer and DJI in the same portfolio, assuming nothing else is changed.
ProShares UltraShort Additional Risk Indicators
The analysis of ProShares UltraShort's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in ProShares UltraShort's investment and either accepting that risk or mitigating it. Along with some common measures of ProShares UltraShort etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1499 | |||
| Market Risk Adjusted Performance | (0.17) | |||
| Mean Deviation | 2.17 | |||
| Semi Deviation | 2.54 | |||
| Downside Deviation | 2.96 | |||
| Coefficient Of Variation | 591.1 | |||
| Standard Deviation | 2.82 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
ProShares UltraShort Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against ProShares UltraShort as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. ProShares UltraShort's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, ProShares UltraShort's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to ProShares UltraShort Consumer.
When determining whether ProShares UltraShort is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if ProShares Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Proshares Ultrashort Consumer Etf. Highlighted below are key reports to facilitate an investment decision about Proshares Ultrashort Consumer Etf: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares UltraShort Consumer. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
The market value of ProShares UltraShort is measured differently than its book value, which is the value of ProShares that is recorded on the company's balance sheet. Investors also form their own opinion of ProShares UltraShort's value that differs from its market value or its book value, called intrinsic value, which is ProShares UltraShort's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ProShares UltraShort's market value can be influenced by many factors that don't directly affect ProShares UltraShort's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ProShares UltraShort's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProShares UltraShort is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProShares UltraShort's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.