Correlation Between ProShares Ultra and Collaborative Investment

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

By analyzing existing cross correlation between ProShares Ultra Nasdaq and Collaborative Investment Series, you can compare the effects of market volatilities on ProShares Ultra and Collaborative Investment 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 Ultra with a short position of Collaborative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Collaborative Investment.

Diversification Opportunities for ProShares Ultra and Collaborative Investment

0.87

Correlation Coefficient

ProShares Ultra  Collaborative Investment

Very poor diversification

The 3 months correlation between ProShares and Collaborative is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Nasdaq and Collaborative Investment Serie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collaborative Investment and ProShares Ultra 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 Ultra Nasdaq are associated (or correlated) with Collaborative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collaborative Investment has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Collaborative Investment go up and down completely randomly.

Pair Corralation between ProShares Ultra and Collaborative Investment

Considering the 90-day investment horizon ProShares Ultra Nasdaq is expected to generate 2.2 times more return on investment than Collaborative Investment. However, ProShares Ultra is 2.2 times more volatile than Collaborative Investment Series. It trades about 0.25 of its potential returns per unit of risk. Collaborative Investment Series is currently generating about 0.12 per unit of risk. If you would invest  5,042  in ProShares Ultra Nasdaq on August 11, 2025 and sell it today you would earn a total of  1,911  from holding ProShares Ultra Nasdaq or generate 37.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

ProShares Ultra Nasdaq  vs.  Collaborative Investment Serie

ProShares Ultra Nasdaq

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Nasdaq are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady forward indicators, ProShares Ultra sustained solid returns over the last few months and may actually be approaching a breakup point.

Collaborative Investment

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Collaborative Investment Series are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Collaborative Investment may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with ProShares Ultra and Collaborative Investment

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

The idea behind ProShares Ultra Nasdaq and Collaborative Investment Series 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.