Correlation Between ProShares Trust and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Xtrackers Harvest 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 Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Xtrackers Harvest CSI, you can compare the effects of market volatilities on ProShares Trust and Xtrackers Harvest 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 Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Xtrackers Harvest.
Diversification Opportunities for ProShares Trust and Xtrackers Harvest
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and Xtrackers is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Xtrackers Harvest CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI 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 Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI has no effect on the direction of ProShares Trust i.e., ProShares Trust and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between ProShares Trust and Xtrackers Harvest
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Xtrackers Harvest. In addition to that, ProShares Trust is 1.86 times more volatile than Xtrackers Harvest CSI. It trades about -0.1 of its total potential returns per unit of risk. Xtrackers Harvest CSI is currently generating about 0.02 per unit of volatility. If you would invest 2,633 in Xtrackers Harvest CSI on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Xtrackers Harvest CSI or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Xtrackers Harvest CSI
Performance |
| Timeline |
| ProShares Trust |
| Xtrackers Harvest CSI |
ProShares Trust and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Xtrackers Harvest
The main advantage of trading using opposite ProShares Trust and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.| ProShares Trust vs. ProShares Ultra Euro | ProShares Trust vs. ProShares UltraShort Yen | ProShares Trust vs. ProShares Ultra Telecommunications | ProShares Trust vs. ProShares Ultra Consumer |
| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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