Correlation Between BlackRock ESG and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both BlackRock ESG and ProShares UltraPro 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 BlackRock ESG and ProShares UltraPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock ESG Capital and ProShares UltraPro Short, you can compare the effects of market volatilities on BlackRock ESG and ProShares UltraPro 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 BlackRock ESG with a short position of ProShares UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and ProShares UltraPro.
Diversification Opportunities for BlackRock ESG and ProShares UltraPro
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BlackRock and ProShares is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short and BlackRock ESG 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 BlackRock ESG Capital are associated (or correlated) with ProShares UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and ProShares UltraPro go up and down completely randomly.
Pair Corralation between BlackRock ESG and ProShares UltraPro
Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 0.47 times more return on investment than ProShares UltraPro. However, BlackRock ESG Capital is 2.13 times less risky than ProShares UltraPro. It trades about 0.29 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.25 per unit of risk. If you would invest 1,577 in BlackRock ESG Capital on May 1, 2025 and sell it today you would earn a total of 57.00 from holding BlackRock ESG Capital or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock ESG Capital vs. ProShares UltraPro Short
Performance |
| Timeline |
| BlackRock ESG Capital |
| ProShares UltraPro Short |
BlackRock ESG and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock ESG and ProShares UltraPro
The main advantage of trading using opposite BlackRock ESG and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG position performs unexpectedly, ProShares UltraPro 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 ProShares UltraPro will offset losses from the drop in ProShares UltraPro's long position.| BlackRock ESG vs. BlackRock Capital Allocation | BlackRock ESG vs. GCM Grosvenor | BlackRock ESG vs. MFS High Yield | BlackRock ESG vs. First Trust High |
| ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro SP500 | ProShares UltraPro vs. Direxion Daily SP |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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