Correlation Between ProShares Ultra and PGIM Active

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

By analyzing existing cross correlation between ProShares Ultra Oil and PGIM Active High, you can compare the effects of market volatilities on ProShares Ultra and PGIM Active 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 PGIM Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and PGIM Active.

Diversification Opportunities for ProShares Ultra and PGIM Active

0.27

Correlation Coefficient

ProShares Ultra  PGIM Active

Modest diversification

The 3 months correlation between ProShares and PGIM is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Oil and PGIM Active High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Active High 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 Oil are associated (or correlated) with PGIM Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Active High has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and PGIM Active go up and down completely randomly.

Pair Corralation between ProShares Ultra and PGIM Active

Considering the 90-day investment horizon ProShares Ultra Oil is expected to generate 11.14 times more return on investment than PGIM Active. However, ProShares Ultra is 11.14 times more volatile than PGIM Active High. It trades about 0.08 of its potential returns per unit of risk. PGIM Active High is currently generating about 0.08 per unit of risk. If you would invest  3,447  in ProShares Ultra Oil on September 5, 2025 and sell it today you would earn a total of  361.00  from holding ProShares Ultra Oil or generate 10.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

ProShares Ultra Oil  vs.  PGIM Active High

ProShares Ultra Oil

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Oil are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in January 2026.

PGIM Active High

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PGIM Active High are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, PGIM Active is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ProShares Ultra and PGIM Active

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

The idea behind ProShares Ultra Oil and PGIM Active High 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.