Correlation Between ProShares Ultra and Simplify Managed

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

Diversification Opportunities for ProShares Ultra and Simplify Managed

-0.19

Correlation Coefficient

ProShares Ultra  Simplify Managed

Good diversification

The 3 months correlation between ProShares and Simplify is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and Simplify Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Managed Futures 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 Simplify Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Managed Futures has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Simplify Managed go up and down completely randomly.

Pair Corralation between ProShares Ultra and Simplify Managed

Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the Simplify Managed. In addition to that, ProShares Ultra is 1.32 times more volatile than Simplify Managed Futures. It trades about -0.27 of its total potential returns per unit of risk. Simplify Managed Futures is currently generating about 0.34 per unit of volatility. If you would invest  2,674  in Simplify Managed Futures on April 29, 2025 and sell it today you would earn a total of  134.00  from holding Simplify Managed Futures or generate 5.01% 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.  Simplify Managed Futures

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 latest unsteady performance, the Etf's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

Simplify Managed Futures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Managed Futures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Simplify Managed is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Ultra and Simplify Managed

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

The idea behind ProShares Ultra Yen and Simplify Managed Futures 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.