Correlation Analysis Between ProShares UltraShort and ProShares Short

Analyzing existing cross correlation between ProShares UltraShort SP500 and ProShares Short SP500. You can compare the effects of market volatilities on ProShares UltraShort and ProShares Short 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 ProShares Short. See also your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and ProShares Short.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

ProShares UltraShort  
00

Risk-Adjusted Performance

Over the last 30 days ProShares UltraShort SP500 has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of unsteady performance in the last few months, the Etf's forward-looking signals remain relatively invariable which may send shares a bit higher in February 2020. The latest agitation may also be a sign of long running up-swing for the ETF management.
ProShares Short SP500  
00

Risk-Adjusted Performance

Over the last 30 days ProShares Short SP500 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's fundamental indicators remain stable and the prevalent disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholder.

ProShares UltraShort and ProShares Short Volatility Contrast

 Predicted Return Density 
    
  Returns 

ProShares UltraShort SP500  vs.  ProShares Short SP500

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, ProShares UltraShort SP500 is expected to under-perform the ProShares Short. In addition to that, ProShares UltraShort is 1.99 times more volatile than ProShares Short SP500. It trades about -0.31 of its total potential returns per unit of risk. ProShares Short SP500 is currently generating about -0.31 per unit of volatility. If you would invest  2,559  in ProShares Short SP500 on December 26, 2019 and sell it today you would lose (205.00)  from holding ProShares Short SP500 or give up 8.01% of portfolio value over 30 days.

Pair Corralation between ProShares UltraShort and ProShares Short

1.0
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy98.39%
ValuesDaily Returns

Diversification Opportunities for ProShares UltraShort and ProShares Short

ProShares UltraShort SP500 diversification synergy

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort SP500 and ProShares Short SP500 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short SP500 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 SP500 are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short SP500 has no effect on the direction of ProShares UltraShort i.e. ProShares UltraShort and ProShares Short go up and down completely randomly.
See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.