Correlation Between ProShares Ultra and Amplify Transformational

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

By analyzing existing cross correlation between ProShares Ultra Semiconductors and Amplify Transformational Data, you can compare the effects of market volatilities on ProShares Ultra and Amplify Transformational 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 Amplify Transformational. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Amplify Transformational.

Diversification Opportunities for ProShares Ultra and Amplify Transformational

0.97

Correlation Coefficient

ProShares Ultra  Amplify Transformational

Almost no diversification

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

Pair Corralation between ProShares Ultra and Amplify Transformational

Considering the 90-day investment horizon ProShares Ultra Semiconductors is expected to generate 1.39 times more return on investment than Amplify Transformational. However, ProShares Ultra is 1.39 times more volatile than Amplify Transformational Data. It trades about 0.35 of its potential returns per unit of risk. Amplify Transformational Data is currently generating about 0.22 per unit of risk. If you would invest  4,148  in ProShares Ultra Semiconductors on May 4, 2025 and sell it today you would earn a total of  4,074  from holding ProShares Ultra Semiconductors or generate 98.22% 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 Semiconductors  vs.  Amplify Transformational Data

ProShares Ultra Semi

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Semiconductors are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ProShares Ultra exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amplify Transformational

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Transformational Data are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Amplify Transformational disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares Ultra and Amplify Transformational

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

The idea behind ProShares Ultra Semiconductors and Amplify Transformational Data 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.