Correlation Between ProShares Trust and Northern Lights
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Northern Lights 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 Northern Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Northern Lights, you can compare the effects of market volatilities on ProShares Trust and Northern Lights 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 Northern Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Northern Lights.
Diversification Opportunities for ProShares Trust and Northern Lights
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Northern Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lights 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 Northern Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lights has no effect on the direction of ProShares Trust i.e., ProShares Trust and Northern Lights go up and down completely randomly.
Pair Corralation between ProShares Trust and Northern Lights
If you would invest 2,310 in ProShares Trust on November 8, 2024 and sell it today you would lose (11.00) from holding ProShares Trust or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Trust vs. Northern Lights
Performance |
| Timeline |
| ProShares Trust |
| Northern Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Trust and Northern Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Northern Lights
The main advantage of trading using opposite ProShares Trust and Northern Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Northern Lights 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 Northern Lights will offset losses from the drop in Northern Lights' 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 |
| Northern Lights vs. Inspire Tactical Balanced | Northern Lights vs. Inspire SmallMid Cap | Northern Lights vs. Inspire Faithward Mid | Northern Lights vs. Northern Lights |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |