Correlation Between ProShares Ultra and SPDR SSGA

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SPDR SSGA 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 SPDR SSGA 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 SPDR SSGA My2032, you can compare the effects of market volatilities on ProShares Ultra and SPDR SSGA 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 SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SPDR SSGA.

Diversification Opportunities for ProShares Ultra and SPDR SSGA

-0.63

Correlation Coefficient

ProShares Ultra  SPDR SSGA

Excellent diversification

The 3 months correlation between ProShares and SPDR is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and SPDR SSGA My2032 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA My2032 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 SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA My2032 has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SPDR SSGA go up and down completely randomly.

Pair Corralation between ProShares Ultra and SPDR SSGA

Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the SPDR SSGA. In addition to that, ProShares Ultra is 4.88 times more volatile than SPDR SSGA My2032. It trades about -0.07 of its total potential returns per unit of risk. SPDR SSGA My2032 is currently generating about 0.18 per unit of volatility. If you would invest  2,389  in SPDR SSGA My2032 on April 24, 2025 and sell it today you would earn a total of  77.00  from holding SPDR SSGA My2032 or generate 3.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

ProShares Ultra Yen  vs.  SPDR SSGA My2032

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.

SPDR SSGA My2032

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SSGA My2032 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, SPDR SSGA is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ProShares Ultra and SPDR SSGA

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

The idea behind ProShares Ultra Yen and SPDR SSGA My2032 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.