Correlation Between ProShares UltraPro and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and Fidelity Sustainable 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 UltraPro and Fidelity Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraPro SP500 and Fidelity Sustainable Low, you can compare the effects of market volatilities on ProShares UltraPro and Fidelity Sustainable 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 UltraPro with a short position of Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and Fidelity Sustainable.
Diversification Opportunities for ProShares UltraPro and Fidelity Sustainable
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and Fidelity is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and Fidelity Sustainable Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable Low and ProShares UltraPro 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 UltraPro SP500 are associated (or correlated) with Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable Low has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between ProShares UltraPro and Fidelity Sustainable
Given the investment horizon of 90 days ProShares UltraPro SP500 is expected to generate 15.8 times more return on investment than Fidelity Sustainable. However, ProShares UltraPro is 15.8 times more volatile than Fidelity Sustainable Low. It trades about 0.21 of its potential returns per unit of risk. Fidelity Sustainable Low is currently generating about 0.13 per unit of risk. If you would invest 8,083 in ProShares UltraPro SP500 on June 1, 2025 and sell it today you would earn a total of 2,080 from holding ProShares UltraPro SP500 or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. Fidelity Sustainable Low
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| Fidelity Sustainable Low |
ProShares UltraPro and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and Fidelity Sustainable
The main advantage of trading using opposite ProShares UltraPro and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable's long position.| ProShares UltraPro vs. ProShares UltraPro Dow30 | ProShares UltraPro vs. ProShares UltraPro Short | ProShares UltraPro vs. ProShares UltraPro QQQ | ProShares UltraPro vs. Direxion Daily Small |
| Fidelity Sustainable vs. Strategy Shares | Fidelity Sustainable vs. Freedom Day Dividend | Fidelity Sustainable vs. iShares MSCI China | Fidelity Sustainable vs. iShares Dividend and |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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