Correlation Between ProShares Ultra and Innovator Growth

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

By analyzing existing cross correlation between ProShares Ultra QQQ and Innovator Growth 100 Accelerated, you can compare the effects of market volatilities on ProShares Ultra and Innovator Growth 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 Innovator Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Innovator Growth.

Diversification Opportunities for ProShares Ultra and Innovator Growth

0.97

Correlation Coefficient

ProShares Ultra  Innovator Growth

Almost no diversification

The 3 months correlation between ProShares and Innovator is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra QQQ and Innovator Growth 100 Accelerat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Growth 100 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 QQQ are associated (or correlated) with Innovator Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Growth 100 has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Innovator Growth go up and down completely randomly.

Pair Corralation between ProShares Ultra and Innovator Growth

Considering the 90-day investment horizon ProShares Ultra QQQ is expected to generate 3.52 times more return on investment than Innovator Growth. However, ProShares Ultra is 3.52 times more volatile than Innovator Growth 100 Accelerated. It trades about 0.28 of its potential returns per unit of risk. Innovator Growth 100 Accelerated is currently generating about 0.3 per unit of risk. If you would invest  9,344  in ProShares Ultra QQQ on May 2, 2025 and sell it today you would earn a total of  3,071  from holding ProShares Ultra QQQ or generate 32.87% return on investment over 90 days.

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

ProShares Ultra QQQ  vs.  Innovator Growth 100 Accelerat

ProShares Ultra QQQ

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra QQQ are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, ProShares Ultra exhibited solid returns over the last few months and may actually be approaching a breakup point.

Innovator Growth 100

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Innovator Growth 100 Accelerated are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Innovator Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ProShares Ultra and Innovator Growth

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

The idea behind ProShares Ultra QQQ and Innovator Growth 100 Accelerated 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 Global Correlations module to find global opportunities by holding instruments from different markets.