Correlation Between ProShares Ultra and QRAFT AI

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

By analyzing existing cross correlation between ProShares Ultra Yen and QRAFT AI Enhanced Large, you can compare the effects of market volatilities on ProShares Ultra and QRAFT AI 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 QRAFT AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and QRAFT AI.

Diversification Opportunities for ProShares Ultra and QRAFT AI

-0.25

Correlation Coefficient

ProShares Ultra  QRAFT AI

Very good diversification

The 3 months correlation between ProShares and QRAFT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and QRAFT AI Enhanced Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QRAFT AI Enhanced 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 Yen are associated (or correlated) with QRAFT AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QRAFT AI Enhanced has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and QRAFT AI go up and down completely randomly.

Pair Corralation between ProShares Ultra and QRAFT AI

Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the QRAFT AI. In addition to that, ProShares Ultra is 1.48 times more volatile than QRAFT AI Enhanced Large. It trades about -0.06 of its total potential returns per unit of risk. QRAFT AI Enhanced Large is currently generating about 0.28 per unit of volatility. If you would invest  3,970  in QRAFT AI Enhanced Large on May 1, 2025 and sell it today you would earn a total of  640.00  from holding QRAFT AI Enhanced Large or generate 16.12% return on investment over 90 days.

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

ProShares Ultra Yen  vs.  QRAFT AI Enhanced Large

ProShares Ultra Yen

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProShares Ultra Yen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, ProShares Ultra is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

QRAFT AI Enhanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in QRAFT AI Enhanced Large are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, QRAFT AI displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProShares Ultra and QRAFT AI

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

The idea behind ProShares Ultra Yen and QRAFT AI Enhanced Large 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.