Correlation Between ProShares UltraPro and Rayliant Quantamental
Can any of the company-specific risk be diversified away by investing in both ProShares UltraPro and Rayliant Quantamental 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 Rayliant Quantamental 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 Rayliant Quantamental Emerging, you can compare the effects of market volatilities on ProShares UltraPro and Rayliant Quantamental 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 Rayliant Quantamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraPro and Rayliant Quantamental.
Diversification Opportunities for ProShares UltraPro and Rayliant Quantamental
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and Rayliant is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraPro SP500 and Rayliant Quantamental Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rayliant Quantamental 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 Rayliant Quantamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rayliant Quantamental has no effect on the direction of ProShares UltraPro i.e., ProShares UltraPro and Rayliant Quantamental go up and down completely randomly.
Pair Corralation between ProShares UltraPro and Rayliant Quantamental
Given the investment horizon of 90 days ProShares UltraPro SP500 is expected to generate 3.14 times more return on investment than Rayliant Quantamental. However, ProShares UltraPro is 3.14 times more volatile than Rayliant Quantamental Emerging. It trades about 0.33 of its potential returns per unit of risk. Rayliant Quantamental Emerging is currently generating about 0.43 per unit of risk. If you would invest 6,083 in ProShares UltraPro SP500 on April 23, 2025 and sell it today you would earn a total of 3,434 from holding ProShares UltraPro SP500 or generate 56.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraPro SP500 vs. Rayliant Quantamental Emerging
Performance |
| Timeline |
| ProShares UltraPro SP500 |
| Rayliant Quantamental |
ProShares UltraPro and Rayliant Quantamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraPro and Rayliant Quantamental
The main advantage of trading using opposite ProShares UltraPro and Rayliant Quantamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraPro position performs unexpectedly, Rayliant Quantamental 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 Rayliant Quantamental will offset losses from the drop in Rayliant Quantamental'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |