Correlation Between ProShares Ultra and Simplify Asset

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Simplify Asset 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 Simplify Asset 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 Simplify Asset Management, you can compare the effects of market volatilities on ProShares Ultra and Simplify Asset 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 Simplify Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Simplify Asset.

Diversification Opportunities for ProShares Ultra and Simplify Asset

0.0

Correlation Coefficient

ProShares Ultra  Simplify Asset

Pay attention - limited upside

The 3 months correlation between ProShares and Simplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Semiconductors and Simplify Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Asset Management 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 Simplify Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Asset Management has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Simplify Asset go up and down completely randomly.

Pair Corralation between ProShares Ultra and Simplify Asset

If you would invest  3,744  in ProShares Ultra Semiconductors on April 24, 2025 and sell it today you would earn a total of  4,172  from holding ProShares Ultra Semiconductors or generate 111.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

ProShares Ultra Semiconductors  vs.  Simplify Asset Management

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 30 (%) 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.

Simplify Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simplify Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Simplify Asset is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ProShares Ultra and Simplify Asset

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

The idea behind ProShares Ultra Semiconductors and Simplify Asset Management 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.