Correlation Between ProShares Trust and Columbia India
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Columbia India 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 Trust and Columbia India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Columbia India Consumer, you can compare the effects of market volatilities on ProShares Trust and Columbia India 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 Trust with a short position of Columbia India. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Columbia India.
Diversification Opportunities for ProShares Trust and Columbia India
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Columbia India Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia India Consumer and ProShares Trust 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 Trust are associated (or correlated) with Columbia India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia India Consumer has no effect on the direction of ProShares Trust i.e., ProShares Trust and Columbia India go up and down completely randomly.
Pair Corralation between ProShares Trust and Columbia India
Given the investment horizon of 90 days ProShares Trust is expected to generate 3.16 times more return on investment than Columbia India. However, ProShares Trust is 3.16 times more volatile than Columbia India Consumer. It trades about 0.01 of its potential returns per unit of risk. Columbia India Consumer is currently generating about -0.36 per unit of risk. If you would invest 8,298 in ProShares Trust on November 3, 2024 and sell it today you would lose (24.00) from holding ProShares Trust or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ProShares Trust vs. Columbia India Consumer
Performance |
| Timeline |
| ProShares Trust |
| Columbia India Consumer |
ProShares Trust and Columbia India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Columbia India
The main advantage of trading using opposite ProShares Trust and Columbia India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Columbia India 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 Columbia India will offset losses from the drop in Columbia India's long position.| ProShares Trust vs. ProShares Trust | ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Grayscale Ethereum Trust |
| Columbia India vs. iShares MSCI India | Columbia India vs. iShares India 50 | Columbia India vs. Invesco India ETF | Columbia India vs. WisdomTree India Earnings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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