Correlation Between ProShares Trust and CHIR
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and CHIR 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 CHIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and CHIR, you can compare the effects of market volatilities on ProShares Trust and CHIR 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 CHIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and CHIR.
Diversification Opportunities for ProShares Trust and CHIR
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProShares and CHIR is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and CHIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIR 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 CHIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIR has no effect on the direction of ProShares Trust i.e., ProShares Trust and CHIR go up and down completely randomly.
Pair Corralation between ProShares Trust and CHIR
If you would invest 1,711 in CHIR on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CHIR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ProShares Trust vs. CHIR
Performance |
| Timeline |
| ProShares Trust |
| CHIR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Trust and CHIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and CHIR
The main advantage of trading using opposite ProShares Trust and CHIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, CHIR 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 CHIR will offset losses from the drop in CHIR'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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