Correlation Between Growth Fund and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both Growth Fund and ProShares MSCI 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 Growth Fund and ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and ProShares MSCI Emerging, you can compare the effects of market volatilities on Growth Fund and ProShares MSCI 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 Growth Fund with a short position of ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and ProShares MSCI.
Diversification Opportunities for Growth Fund and ProShares MSCI
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growth and ProShares is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and ProShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Emerging and Growth Fund 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 Growth Fund Of are associated (or correlated) with ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Emerging has no effect on the direction of Growth Fund i.e., Growth Fund and ProShares MSCI go up and down completely randomly.
Pair Corralation between Growth Fund and ProShares MSCI
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.0 times more return on investment than ProShares MSCI. However, Growth Fund Of is 1.0 times less risky than ProShares MSCI. It trades about 0.11 of its potential returns per unit of risk. ProShares MSCI Emerging is currently generating about -0.02 per unit of risk. If you would invest 4,847 in Growth Fund Of on October 24, 2024 and sell it today you would earn a total of 2,940 from holding Growth Fund Of or generate 60.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Growth Fund Of vs. ProShares MSCI Emerging
Performance |
| Timeline |
| Growth Fund |
| ProShares MSCI Emerging |
Growth Fund and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and ProShares MSCI
The main advantage of trading using opposite Growth Fund and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, ProShares MSCI 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| ProShares MSCI vs. ProShares MSCI EAFE | ProShares MSCI vs. ProShares MSCI Europe | ProShares MSCI vs. ProShares Russell 2000 | ProShares MSCI vs. ProShares SP MidCap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world |