Correlation Between ProShares Trust and IShares Future
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and IShares Future 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 IShares Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and iShares Future AI, you can compare the effects of market volatilities on ProShares Trust and IShares Future 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 IShares Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and IShares Future.
Diversification Opportunities for ProShares Trust and IShares Future
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and IShares is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and iShares Future AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Future AI 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 IShares Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Future AI has no effect on the direction of ProShares Trust i.e., ProShares Trust and IShares Future go up and down completely randomly.
Pair Corralation between ProShares Trust and IShares Future
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the IShares Future. In addition to that, ProShares Trust is 2.66 times more volatile than iShares Future AI. It trades about -0.1 of its total potential returns per unit of risk. iShares Future AI is currently generating about 0.04 per unit of volatility. If you would invest 3,430 in iShares Future AI on September 14, 2024 and sell it today you would earn a total of 397.00 from holding iShares Future AI or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. iShares Future AI
Performance |
| Timeline |
| ProShares Trust |
| iShares Future AI |
ProShares Trust and IShares Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and IShares Future
The main advantage of trading using opposite ProShares Trust and IShares Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, IShares Future 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 IShares Future will offset losses from the drop in IShares Future's long position.| ProShares Trust vs. AXS TSLA Bear | ProShares Trust vs. Tuttle Capital Short | ProShares Trust vs. ProShares Bitcoin Strategy | ProShares Trust vs. ProShares UltraShort Bloomberg |
| IShares Future vs. Freedom Day Dividend | IShares Future vs. Franklin Templeton ETF | IShares Future vs. iShares MSCI China | IShares Future vs. Tidal Trust II |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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