Correlation Between ProShares Ultra and Simplify Bitcoin

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and Simplify Bitcoin 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 Simplify Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProShares Ultra Silver and Simplify Bitcoin Strategy, you can compare the effects of market volatilities on ProShares Ultra and Simplify Bitcoin 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 Simplify Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and Simplify Bitcoin.

Diversification Opportunities for ProShares Ultra and Simplify Bitcoin

-0.59

Correlation Coefficient

ProShares Ultra  Simplify Bitcoin

Excellent diversification

The 3 months correlation between ProShares and Simplify is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Silver and Simplify Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Bitcoin Strategy 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 Silver are associated (or correlated) with Simplify Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Bitcoin Strategy has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and Simplify Bitcoin go up and down completely randomly.

Pair Corralation between ProShares Ultra and Simplify Bitcoin

Considering the 90-day investment horizon ProShares Ultra Silver is expected to generate 1.0 times more return on investment than Simplify Bitcoin. However, ProShares Ultra Silver is 1.0 times less risky than Simplify Bitcoin. It trades about 0.22 of its potential returns per unit of risk. Simplify Bitcoin Strategy is currently generating about -0.11 per unit of risk. If you would invest  6,128  in ProShares Ultra Silver on September 7, 2025 and sell it today you would earn a total of  5,234  from holding ProShares Ultra Silver or generate 85.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

ProShares Ultra Silver  vs.  Simplify Bitcoin Strategy

ProShares Ultra Silver

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Silver are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, ProShares Ultra reported solid returns over the last few months and may actually be approaching a breakup point.

Simplify Bitcoin Strategy

Risk-Adjusted Performance

Weakest

Over the last 90 days Simplify Bitcoin Strategy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Pair Trading with ProShares Ultra and Simplify Bitcoin

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

The idea behind ProShares Ultra Silver and Simplify Bitcoin Strategy 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.