Correlation Between Barclays Capital and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and ProShares UltraPro 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 Barclays Capital and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and ProShares UltraPro QQQ, you can compare the effects of market volatilities on Barclays Capital and ProShares UltraPro 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 Barclays Capital with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and ProShares UltraPro.
Diversification Opportunities for Barclays Capital and ProShares UltraPro
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and ProShares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and ProShares UltraPro QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro QQQ and Barclays Capital 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 Barclays Capital are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro QQQ has no effect on the direction of Barclays Capital i.e., Barclays Capital and ProShares UltraPro go up and down completely randomly.
Pair Corralation between Barclays Capital and ProShares UltraPro
If you would invest 3,905 in ProShares UltraPro QQQ on January 24, 2024 and sell it today you would earn a total of 1,187 from holding ProShares UltraPro QQQ or generate 30.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.74% |
| Values | Daily Returns |
Barclays Capital vs. ProShares UltraPro QQQ
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares UltraPro QQQ |
Barclays Capital and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and ProShares UltraPro
The main advantage of trading using opposite Barclays Capital and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. Direxion Daily Semiconductor | ProShares UltraPro vs. ProShares UltraPro SP500 | ProShares UltraPro vs. Direxion Daily SP500 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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