Correlation Between Barclays ETN and ProShares Pet
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and ProShares Pet 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 Barclays ETN and ProShares Pet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and ProShares Pet Care, you can compare the effects of market volatilities on Barclays ETN and ProShares Pet 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 Barclays ETN with a short position of ProShares Pet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and ProShares Pet.
Diversification Opportunities for Barclays ETN and ProShares Pet
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and ProShares is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and ProShares Pet Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Pet Care and Barclays ETN 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 Barclays ETN Select are associated (or correlated) with ProShares Pet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Pet Care has no effect on the direction of Barclays ETN i.e., Barclays ETN and ProShares Pet go up and down completely randomly.
Pair Corralation between Barclays ETN and ProShares Pet
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 1.03 times more return on investment than ProShares Pet. However, Barclays ETN is 1.03 times more volatile than ProShares Pet Care. It trades about 0.63 of its potential returns per unit of risk. ProShares Pet Care is currently generating about 0.08 per unit of risk. If you would invest 2,813 in Barclays ETN Select on October 23, 2024 and sell it today you would earn a total of 355.00 from holding Barclays ETN Select or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays ETN Select vs. ProShares Pet Care
Performance |
| Timeline |
| Barclays ETN Select |
| ProShares Pet Care |
Barclays ETN and ProShares Pet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and ProShares Pet
The main advantage of trading using opposite Barclays ETN and ProShares Pet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, ProShares Pet 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 Pet will offset losses from the drop in ProShares Pet's long position.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
| ProShares Pet vs. ProShares Online Retail | ProShares Pet vs. VanEck Video Gaming | ProShares Pet vs. Renaissance IPO ETF | ProShares Pet vs. Invesco Dynamic Leisure |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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