Correlation Between Bluerock High and ProShares UltraPro

Can any of the company-specific risk be diversified away by investing in both Bluerock High 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 Bluerock High and ProShares UltraPro 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 UltraPro Short, you can compare the effects of market volatilities on Bluerock High 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 Bluerock High with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock High and ProShares UltraPro.

Diversification Opportunities for Bluerock High and ProShares UltraPro

-0.71

Correlation Coefficient

Bluerock High  ProShares UltraPro

Pay attention - limited upside

The 3 months correlation between Bluerock and ProShares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock High Income 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 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 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 Bluerock High i.e., Bluerock High and ProShares UltraPro go up and down completely randomly.

Pair Corralation between Bluerock High and ProShares UltraPro

Assuming the 90 days horizon Bluerock High Income is expected to generate 0.15 times more return on investment than ProShares UltraPro. However, Bluerock High Income is 6.54 times less risky than ProShares UltraPro. It trades about 0.13 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.09 per unit of risk. If you would invest  2,256  in Bluerock High Income on July 26, 2025 and sell it today you would earn a total of  32.00  from holding Bluerock High Income or generate 1.42% return on investment over 90 days.

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

Bluerock High Income  vs.  ProShares UltraPro Short

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 6 (%) 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 latest stock price disturbance, may contribute to short-term losses for the 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 sluggish performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with Bluerock High and ProShares UltraPro

The main advantage of trading using opposite Bluerock High and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock High 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 Bluerock High Income 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.