Correlation Between IShares Evolved and ProShares Ultra

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Can any of the company-specific risk be diversified away by investing in both IShares Evolved and ProShares Ultra 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 IShares Evolved and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Evolved Discretionary and ProShares Ultra Basic, you can compare the effects of market volatilities on IShares Evolved and ProShares Ultra 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 IShares Evolved with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Evolved and ProShares Ultra.

Diversification Opportunities for IShares Evolved and ProShares Ultra

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between IShares and ProShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding iShares Evolved Discretionary and ProShares Ultra Basic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Basic and IShares Evolved 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 iShares Evolved Discretionary are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Basic has no effect on the direction of IShares Evolved i.e., IShares Evolved and ProShares Ultra go up and down completely randomly.

Pair Corralation between IShares Evolved and ProShares Ultra

Given the investment horizon of 90 days iShares Evolved Discretionary is expected to generate 0.42 times more return on investment than ProShares Ultra. However, iShares Evolved Discretionary is 2.4 times less risky than ProShares Ultra. It trades about -0.11 of its potential returns per unit of risk. ProShares Ultra Basic is currently generating about -0.06 per unit of risk. If you would invest  5,664  in iShares Evolved Discretionary on August 17, 2025 and sell it today you would lose (286.00) from holding iShares Evolved Discretionary or give up 5.05% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

iShares Evolved Discretionary  vs.  ProShares Ultra Basic

 Performance 
       Timeline  
iShares Evolved Disc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days iShares Evolved Discretionary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, IShares Evolved is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
ProShares Ultra Basic 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ProShares Ultra Basic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

IShares Evolved and ProShares Ultra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares Evolved and ProShares Ultra

The main advantage of trading using opposite IShares Evolved and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Evolved position performs unexpectedly, ProShares Ultra 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 Ultra will offset losses from the drop in ProShares Ultra's long position.
The idea behind iShares Evolved Discretionary and ProShares Ultra Basic 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.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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