Correlation Between ProShares Ultra and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SPDR Gold 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 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Silver and SPDR Gold Mini, you can compare the effects of market volatilities on ProShares Ultra and SPDR Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SPDR Gold.
Diversification Opportunities for ProShares Ultra and SPDR Gold
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ProShares and SPDR is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Silver and SPDR Gold Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Mini 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 Silver are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Mini has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SPDR Gold go up and down completely randomly.
Pair Corralation between ProShares Ultra and SPDR Gold
Considering the 90-day investment horizon ProShares Ultra Silver is expected to generate 3.45 times more return on investment than SPDR Gold. However, ProShares Ultra is 3.45 times more volatile than SPDR Gold Mini. It trades about 0.13 of its potential returns per unit of risk. SPDR Gold Mini is currently generating about 0.01 per unit of risk. If you would invest 4,467 in ProShares Ultra Silver on May 31, 2025 and sell it today you would earn a total of 1,036 from holding ProShares Ultra Silver or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
ProShares Ultra Silver vs. SPDR Gold Mini
Performance |
| Timeline |
| ProShares Ultra Silver |
| SPDR Gold Mini |
ProShares Ultra and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and SPDR Gold
The main advantage of trading using opposite ProShares Ultra and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, SPDR Gold 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 Gold will offset losses from the drop in SPDR Gold's long position.| ProShares Ultra vs. ProShares Ultra Gold | ProShares Ultra vs. ProShares UltraShort Silver | ProShares Ultra vs. DB Gold Double | ProShares Ultra vs. ProShares UltraShort Gold |
| SPDR Gold vs. Sprott Physical Gold | SPDR Gold vs. Sprott Physical Platinum | SPDR Gold vs. Sprott Physical Silver | SPDR Gold vs. Sprott Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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