Correlation Between ProShares UltraShort and YCOM
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort and YCOM 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 YCOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort SmallCap600 and YCOM, you can compare the effects of market volatilities on ProShares UltraShort and YCOM 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 YCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and YCOM.
Diversification Opportunities for ProShares UltraShort and YCOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and YCOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort SmallCap6 and YCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YCOM 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 SmallCap600 are associated (or correlated) with YCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YCOM has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and YCOM go up and down completely randomly.
Pair Corralation between ProShares UltraShort and YCOM
If you would invest (100.00) in YCOM on January 20, 2024 and sell it today you would earn a total of 100.00 from holding YCOM or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares UltraShort SmallCap6 vs. YCOM
Performance |
| Timeline |
| ProShares UltraShort |
| YCOM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares UltraShort and YCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and YCOM
The main advantage of trading using opposite ProShares UltraShort and YCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort position performs unexpectedly, YCOM 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 YCOM will offset losses from the drop in YCOM's long position.| ProShares UltraShort vs. ProShares Ultra SP500 | ProShares UltraShort vs. HUMANA INC | ProShares UltraShort vs. Aquagold International | ProShares UltraShort vs. Thrivent High Yield |
| YCOM vs. ProShares Ultra SP500 | YCOM vs. HUMANA INC | YCOM vs. Aquagold International | YCOM vs. Thrivent High Yield |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |