Correlation Between ProShares Ultra and T Rowe

Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on ProShares Ultra and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and T Rowe.

Diversification Opportunities for ProShares Ultra and T Rowe

0.87

Correlation Coefficient

ProShares Ultra  T Rowe

Very poor diversification

The 3 months correlation between ProShares and TMSL is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Financials and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and T Rowe go up and down completely randomly.

Pair Corralation between ProShares Ultra and T Rowe

Considering the 90-day investment horizon ProShares Ultra Financials is expected to generate 1.79 times more return on investment than T Rowe. However, ProShares Ultra is 1.79 times more volatile than T Rowe Price. It trades about 0.08 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.06 per unit of risk. If you would invest  4,818  in ProShares Ultra Financials on October 7, 2025 and sell it today you would earn a total of  4,776  from holding ProShares Ultra Financials or generate 99.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

ProShares Ultra Financials  vs.  T Rowe Price

ProShares Ultra Fina

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Financials are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in February 2026.

T Rowe Price

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, T Rowe is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ProShares Ultra and T Rowe

The main advantage of trading using opposite ProShares Ultra and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind ProShares Ultra Financials and T Rowe Price 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.