Correlation Between Ultra Nasdaq-100 and Short Precious

Can any of the company-specific risk be diversified away by investing in both Ultra Nasdaq-100 and Short Precious 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 Ultra Nasdaq-100 and Short Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ultra Nasdaq 100 Profunds and Short Precious Metals, you can compare the effects of market volatilities on Ultra Nasdaq-100 and Short Precious 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 Ultra Nasdaq-100 with a short position of Short Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Nasdaq-100 and Short Precious.

Diversification Opportunities for Ultra Nasdaq-100 and Short Precious

-0.46

Correlation Coefficient

Ultra Nasdaq-100  Short Precious

Very good diversification

The 3 months correlation between Ultra and Short is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Nasdaq 100 Profunds and Short Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Precious Metals and Ultra Nasdaq-100 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 Ultra Nasdaq 100 Profunds are associated (or correlated) with Short Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Precious Metals has no effect on the direction of Ultra Nasdaq-100 i.e., Ultra Nasdaq-100 and Short Precious go up and down completely randomly.

Pair Corralation between Ultra Nasdaq-100 and Short Precious

Assuming the 90 days horizon Ultra Nasdaq 100 Profunds is expected to generate 0.82 times more return on investment than Short Precious. However, Ultra Nasdaq 100 Profunds is 1.22 times less risky than Short Precious. It trades about 0.21 of its potential returns per unit of risk. Short Precious Metals is currently generating about -0.22 per unit of risk. If you would invest  11,197  in Ultra Nasdaq 100 Profunds on May 16, 2025 and sell it today you would earn a total of  2,433  from holding Ultra Nasdaq 100 Profunds or generate 21.73% return on investment over 90 days.

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

Ultra Nasdaq 100 Profunds  vs.  Short Precious Metals

Ultra Nasdaq 100

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ultra Nasdaq 100 Profunds are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Ultra Nasdaq-100 showed solid returns over the last few months and may actually be approaching a breakup point.

Short Precious Metals

Risk-Adjusted Performance

Weakest

Over the last 90 days Short Precious Metals has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Ultra Nasdaq-100 and Short Precious

The main advantage of trading using opposite Ultra Nasdaq-100 and Short Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Nasdaq-100 position performs unexpectedly, Short Precious 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 Short Precious will offset losses from the drop in Short Precious' long position.

The idea behind Ultra Nasdaq 100 Profunds and Short Precious Metals 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.