Correlation Between ProShares Ultra and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and SPDR Portfolio 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 SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Financials and SPDR Portfolio TIPS, you can compare the effects of market volatilities on ProShares Ultra and SPDR Portfolio 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 SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and SPDR Portfolio.
Diversification Opportunities for ProShares Ultra and SPDR Portfolio
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and SPDR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Financials and SPDR Portfolio TIPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio TIPS 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 Financials are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio TIPS has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and SPDR Portfolio go up and down completely randomly.
Pair Corralation between ProShares Ultra and SPDR Portfolio
Considering the 90-day investment horizon ProShares Ultra Financials is expected to under-perform the SPDR Portfolio. In addition to that, ProShares Ultra is 8.7 times more volatile than SPDR Portfolio TIPS. It trades about -0.06 of its total potential returns per unit of risk. SPDR Portfolio TIPS is currently generating about 0.1 per unit of volatility. If you would invest 2,593 in SPDR Portfolio TIPS on August 24, 2025 and sell it today you would earn a total of 32.00 from holding SPDR Portfolio TIPS or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Financials vs. SPDR Portfolio TIPS
Performance |
| Timeline |
| ProShares Ultra Fina |
| SPDR Portfolio TIPS |
Risk-Adjusted Performance
Fair
Weak | Strong |
ProShares Ultra and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and SPDR Portfolio
The main advantage of trading using opposite ProShares Ultra and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, SPDR Portfolio 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 SPDR Portfolio will offset losses from the drop in SPDR Portfolio's long position.| ProShares Ultra vs. ProShares Ultra Technology | ProShares Ultra vs. First Trust Health | ProShares Ultra vs. Trust For Professional | ProShares Ultra vs. SPDR MSCI EAFE |
| SPDR Portfolio vs. FlexShares iBoxx 5 Year | SPDR Portfolio vs. iShares Micro Cap ETF | SPDR Portfolio vs. WisdomTree International SmallCap | SPDR Portfolio vs. iShares Energy ETF |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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