Correlation Between Bluerock High and ProShares UltraShort

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

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

Diversification Opportunities for Bluerock High and ProShares UltraShort

-0.31

Correlation Coefficient

Bluerock High  ProShares UltraShort

Very good diversification

The 3 months correlation between Bluerock and ProShares is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock High Income and ProShares UltraShort SmallCap6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and Bluerock High 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 Bluerock High Income 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 Bluerock High i.e., Bluerock High and ProShares UltraShort go up and down completely randomly.

Pair Corralation between Bluerock High and ProShares UltraShort

Assuming the 90 days horizon Bluerock High Income is expected to generate 0.16 times more return on investment than ProShares UltraShort. However, Bluerock High Income is 6.23 times less risky than ProShares UltraShort. It trades about 0.07 of its potential returns per unit of risk. ProShares UltraShort SmallCap600 is currently generating about -0.09 per unit of risk. If you would invest  2,270  in Bluerock High Income on July 6, 2025 and sell it today you would earn a total of  38.00  from holding Bluerock High Income or generate 1.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Bluerock High Income  vs.  ProShares UltraShort SmallCap6

Bluerock High Income

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bluerock High Income are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, Bluerock High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 November 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Bluerock High and ProShares UltraShort

The main advantage of trading using opposite Bluerock High and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock High 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 Bluerock High Income 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.