Correlation Between Tidal ETF and ProShares UltraShort

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

By analyzing existing cross correlation between Tidal ETF Services and ProShares UltraShort SmallCap600, you can compare the effects of market volatilities on Tidal ETF and ProShares UltraShort 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 Tidal ETF with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal ETF and ProShares UltraShort.

Diversification Opportunities for Tidal ETF and ProShares UltraShort

-0.63

Correlation Coefficient

Tidal ETF  ProShares UltraShort

Excellent diversification

The 3 months correlation between Tidal and ProShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Services and ProShares UltraShort SmallCap6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and Tidal ETF 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 Tidal ETF Services are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of Tidal ETF i.e., Tidal ETF and ProShares UltraShort go up and down completely randomly.

Pair Corralation between Tidal ETF and ProShares UltraShort

If you would invest  2,195  in Tidal ETF Services on May 28, 2025 and sell it today you would earn a total of  0.00  from holding Tidal ETF Services or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.61%
Values	Daily Returns

Tidal ETF Services  vs.  ProShares UltraShort SmallCap6

Tidal ETF Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Tidal ETF Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Tidal ETF is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

ProShares UltraShort

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares UltraShort SmallCap600 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Tidal ETF and ProShares UltraShort

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

The idea behind Tidal ETF Services and ProShares UltraShort SmallCap600 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.