Correlation Between SmartETFs Dividend and ProShares UltraPro

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

By analyzing existing cross correlation between SmartETFs Dividend Builder and ProShares UltraPro Short, you can compare the effects of market volatilities on SmartETFs Dividend and ProShares UltraPro 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 SmartETFs Dividend with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartETFs Dividend and ProShares UltraPro.

Diversification Opportunities for SmartETFs Dividend and ProShares UltraPro

-0.82

Correlation Coefficient

SmartETFs Dividend  ProShares UltraPro

Pay attention - limited upside

The 3 months correlation between SmartETFs and ProShares is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SmartETFs Dividend Builder and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and SmartETFs Dividend 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 SmartETFs Dividend Builder are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of SmartETFs Dividend i.e., SmartETFs Dividend and ProShares UltraPro go up and down completely randomly.

Pair Corralation between SmartETFs Dividend and ProShares UltraPro

Given the investment horizon of 90 days SmartETFs Dividend Builder is expected to generate 0.28 times more return on investment than ProShares UltraPro. However, SmartETFs Dividend Builder is 3.63 times less risky than ProShares UltraPro. It trades about 0.08 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.21 per unit of risk. If you would invest  2,968  in SmartETFs Dividend Builder on May 13, 2025 and sell it today you would earn a total of  97.50  from holding SmartETFs Dividend Builder or generate 3.29% return on investment over 90 days.

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

SmartETFs Dividend Builder  vs.  ProShares UltraPro Short

SmartETFs Dividend

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SmartETFs Dividend Builder are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SmartETFs Dividend is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ProShares UltraPro Short

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares UltraPro Short has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with SmartETFs Dividend and ProShares UltraPro

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

The idea behind SmartETFs Dividend Builder and ProShares UltraPro Short 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.