Correlation Between Return Stacked and ProShares UltraPro

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

By analyzing existing cross correlation between Return Stacked Bonds and ProShares UltraPro SP500, you can compare the effects of market volatilities on Return Stacked 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 Return Stacked with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Return Stacked and ProShares UltraPro.

Diversification Opportunities for Return Stacked and ProShares UltraPro

0.0

Correlation Coefficient

Return Stacked  ProShares UltraPro

Pay attention - limited upside

The 3 months correlation between Return and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Return Stacked Bonds and ProShares UltraPro SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro SP500 and Return Stacked 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 Return Stacked Bonds 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 SP500 has no effect on the direction of Return Stacked i.e., Return Stacked and ProShares UltraPro go up and down completely randomly.

Pair Corralation between Return Stacked and ProShares UltraPro

If you would invest (100.00) in Return Stacked Bonds on February 3, 2025 and sell it today you would earn a total of  100.00  from holding Return Stacked Bonds or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Return Stacked Bonds  vs.  ProShares UltraPro SP500

Return Stacked Bonds

Risk-Adjusted Performance

Modest

Over the last 90 days Return Stacked Bonds has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Return Stacked is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ProShares UltraPro SP500

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProShares UltraPro SP500 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Return Stacked and ProShares UltraPro

The main advantage of trading using opposite Return Stacked and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Return Stacked 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 Return Stacked Bonds and ProShares UltraPro SP500 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.