Correlation Between ProShares Ultra and DoubleLine Opportunistic

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

Diversification Opportunities for ProShares Ultra and DoubleLine Opportunistic

-0.46

Correlation Coefficient

ProShares Ultra  DoubleLine Opportunistic

Very good diversification

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

Pair Corralation between ProShares Ultra and DoubleLine Opportunistic

Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the DoubleLine Opportunistic. In addition to that, ProShares Ultra is 4.76 times more volatile than DoubleLine Opportunistic Bond. It trades about -0.01 of its total potential returns per unit of risk. DoubleLine Opportunistic Bond is currently generating about 0.17 per unit of volatility. If you would invest  4,485  in DoubleLine Opportunistic Bond on May 12, 2025 and sell it today you would earn a total of  121.00  from holding DoubleLine Opportunistic Bond or generate 2.7% return on investment over 90 days.

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

ProShares Ultra Yen  vs.  DoubleLine Opportunistic Bond

ProShares Ultra Yen

Risk-Adjusted Performance

Weakest

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.

DoubleLine Opportunistic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleLine Opportunistic Bond are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, DoubleLine Opportunistic is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ProShares Ultra and DoubleLine Opportunistic

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

The idea behind ProShares Ultra Yen and DoubleLine Opportunistic Bond 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.