The Nova/Ursa Ratio is a Technical Indicator that measures the sentiment of the market.
While relatively unscientific in nature, it has been used by market technicians to measure the bullishness or bearishness of the US Stock market. This information can then be used to help the trader decide if he should be Net Long or Net Short in his trading portfolio. The Nova/Ursa Ratio is calculated by the Total Assets in the Rydex Nova Mutual Fund and dividing this number by the Total Assets in the Rydex Ursa Mutual Fund. Since the Nova fund is bullish with a Beta of 1.5 and the Ursa fund is bearish with a Beta of -1.0 the Nova/Ursa Ratio can measure where investors are expecting in the direction of the stock markets.