Correlation Between ProShares UltraShort and Roundhill Uranium

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

By analyzing existing cross correlation between ProShares UltraShort Silver and Roundhill Uranium ETF, you can compare the effects of market volatilities on ProShares UltraShort and Roundhill Uranium 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 UltraShort with a short position of Roundhill Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and Roundhill Uranium.

Diversification Opportunities for ProShares UltraShort and Roundhill Uranium

-0.29

Correlation Coefficient

ProShares UltraShort  Roundhill Uranium

Very good diversification

The 3 months correlation between ProShares and Roundhill is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Silver and Roundhill Uranium ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Uranium ETF and ProShares UltraShort 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 UltraShort Silver are associated (or correlated) with Roundhill Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Uranium ETF has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and Roundhill Uranium go up and down completely randomly.

Pair Corralation between ProShares UltraShort and Roundhill Uranium

Considering the 90-day investment horizon ProShares UltraShort Silver is expected to under-perform the Roundhill Uranium. In addition to that, ProShares UltraShort is 1.41 times more volatile than Roundhill Uranium ETF. It trades about -0.16 of its total potential returns per unit of risk. Roundhill Uranium ETF is currently generating about 0.01 per unit of volatility. If you would invest  2,559  in Roundhill Uranium ETF on May 12, 2025 and sell it today you would earn a total of  2.00  from holding Roundhill Uranium ETF or generate 0.08% return on investment over 90 days.

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

ProShares UltraShort Silver  vs.  Roundhill Uranium ETF

ProShares UltraShort

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares UltraShort Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Roundhill Uranium ETF

Risk-Adjusted Performance

Weakest

Over the last 90 days Roundhill Uranium ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Roundhill Uranium is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares UltraShort and Roundhill Uranium

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

The idea behind ProShares UltraShort Silver and Roundhill Uranium ETF 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.