Correlation Between PROSHARES ULTRASHORT and Ming Shing

Can any of the company-specific risk be diversified away by investing in both PROSHARES ULTRASHORT and Ming Shing 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 ULTRASHORT and Ming Shing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PROSHARES ULTRASHORT RUSSELL and Ming Shing Group, you can compare the effects of market volatilities on PROSHARES ULTRASHORT and Ming Shing 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 ULTRASHORT with a short position of Ming Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSHARES ULTRASHORT and Ming Shing.

Diversification Opportunities for PROSHARES ULTRASHORT and Ming Shing

-0.7

Correlation Coefficient

PROSHARES ULTRASHORT  Ming Shing

Excellent diversification

The 3 months correlation between PROSHARES and Ming is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PROSHARES ULTRASHORT RUSSELL and Ming Shing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Shing Group and PROSHARES ULTRASHORT 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 ULTRASHORT RUSSELL are associated (or correlated) with Ming Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Shing Group has no effect on the direction of PROSHARES ULTRASHORT i.e., PROSHARES ULTRASHORT and Ming Shing go up and down completely randomly.

Pair Corralation between PROSHARES ULTRASHORT and Ming Shing

Considering the 90-day investment horizon PROSHARES ULTRASHORT RUSSELL is expected to generate 1.8 times more return on investment than Ming Shing. However, PROSHARES ULTRASHORT is 1.8 times more volatile than Ming Shing Group. It trades about -0.05 of its potential returns per unit of risk. Ming Shing Group is currently generating about -0.11 per unit of risk. If you would invest  110.00  in PROSHARES ULTRASHORT RUSSELL on September 22, 2024 and sell it today you would lose (37.00) from holding PROSHARES ULTRASHORT RUSSELL or give up 33.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.91%
Values	Daily Returns

PROSHARES ULTRASHORT RUSSELL  vs.  Ming Shing Group

PROSHARES ULTRASHORT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PROSHARES ULTRASHORT RUSSELL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Etf's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Ming Shing Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ming Shing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with PROSHARES ULTRASHORT and Ming Shing

The main advantage of trading using opposite PROSHARES ULTRASHORT and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROSHARES ULTRASHORT position performs unexpectedly, Ming Shing 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 Ming Shing will offset losses from the drop in Ming Shing's long position.

The idea behind PROSHARES ULTRASHORT RUSSELL and Ming Shing Group 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .