Correlation Between Tactical Advantage and ProShares Ultra

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

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

Diversification Opportunities for Tactical Advantage and ProShares Ultra

0.45

Correlation Coefficient

Tactical Advantage  ProShares Ultra

Very weak diversification

The 3 months correlation between Tactical and ProShares is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tactical Advantage ETF and ProShares Ultra Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Indu and Tactical Advantage 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 Tactical Advantage ETF are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Indu has no effect on the direction of Tactical Advantage i.e., Tactical Advantage and ProShares Ultra go up and down completely randomly.

Pair Corralation between Tactical Advantage and ProShares Ultra

Given the investment horizon of 90 days Tactical Advantage ETF is expected to generate 0.43 times more return on investment than ProShares Ultra. However, Tactical Advantage ETF is 2.34 times less risky than ProShares Ultra. It trades about 0.13 of its potential returns per unit of risk. ProShares Ultra Industrials is currently generating about 0.0 per unit of risk. If you would invest  2,141  in Tactical Advantage ETF on July 26, 2025 and sell it today you would earn a total of  123.00  from holding Tactical Advantage ETF or generate 5.74% return on investment over 90 days.

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

Tactical Advantage ETF  vs.  ProShares Ultra Industrials

Tactical Advantage ETF

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tactical Advantage ETF are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Tactical Advantage is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ProShares Ultra Indu

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares Ultra Industrials has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, ProShares Ultra is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Tactical Advantage and ProShares Ultra

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

The idea behind Tactical Advantage ETF and ProShares Ultra Industrials 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.