Correlation Between ProShares Ultra and ClearBridge Large
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and ClearBridge Large 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 ClearBridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Dow30 and ClearBridge Large Cap, you can compare the effects of market volatilities on ProShares Ultra and ClearBridge Large 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 ClearBridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and ClearBridge Large.
Diversification Opportunities for ProShares Ultra and ClearBridge Large
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and ClearBridge is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Dow30 and ClearBridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Large Cap 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 Dow30 are associated (or correlated) with ClearBridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Large Cap has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and ClearBridge Large go up and down completely randomly.
Pair Corralation between ProShares Ultra and ClearBridge Large
Considering the 90-day investment horizon ProShares Ultra Dow30 is expected to generate 1.21 times more return on investment than ClearBridge Large. However, ProShares Ultra is 1.21 times more volatile than ClearBridge Large Cap. It trades about 0.05 of its potential returns per unit of risk. ClearBridge Large Cap is currently generating about -0.02 per unit of risk. If you would invest 5,123 in ProShares Ultra Dow30 on August 24, 2025 and sell it today you would earn a total of 174.00 from holding ProShares Ultra Dow30 or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
ProShares Ultra Dow30 vs. ClearBridge Large Cap
Performance |
| Timeline |
| ProShares Ultra Dow30 |
| ClearBridge Large Cap |
ProShares Ultra and ClearBridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and ClearBridge Large
The main advantage of trading using opposite ProShares Ultra and ClearBridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, ClearBridge Large 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 ClearBridge Large will offset losses from the drop in ClearBridge Large's long position.| ProShares Ultra vs. ProShares Large Cap | ProShares Ultra vs. Burney Factor Rotation | ProShares Ultra vs. ProShares UltraPro Russell2000 | ProShares Ultra vs. Invesco SP 500 |
| ClearBridge Large vs. Nuveen ESG Mid Cap | ClearBridge Large vs. Blackrock Advantage Large | ClearBridge Large vs. JPMorgan Realty Income | ClearBridge Large vs. Nuveen ESG Mid Cap |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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