Correlation Between ProShares Trust and Kurv Technology
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Kurv Technology 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 Kurv Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Kurv Technology Titans, you can compare the effects of market volatilities on ProShares Trust and Kurv Technology 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 Kurv Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Kurv Technology.
Diversification Opportunities for ProShares Trust and Kurv Technology
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and Kurv is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans 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 Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of ProShares Trust i.e., ProShares Trust and Kurv Technology go up and down completely randomly.
Pair Corralation between ProShares Trust and Kurv Technology
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Kurv Technology. In addition to that, ProShares Trust is 3.09 times more volatile than Kurv Technology Titans. It trades about -0.28 of its total potential returns per unit of risk. Kurv Technology Titans is currently generating about 0.19 per unit of volatility. If you would invest 2,546 in Kurv Technology Titans on September 13, 2024 and sell it today you would earn a total of 246.00 from holding Kurv Technology Titans or generate 9.66% 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. Kurv Technology Titans
Performance |
| Timeline |
| ProShares Trust |
| Kurv Technology Titans |
ProShares Trust and Kurv Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Kurv Technology
The main advantage of trading using opposite ProShares Trust and Kurv Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Kurv Technology 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 Kurv Technology will offset losses from the drop in Kurv Technology'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 |
| Kurv Technology vs. Invesco DWA Utilities | Kurv Technology vs. Invesco Dynamic Large | Kurv Technology vs. SCOR PK | Kurv Technology vs. Morningstar Unconstrained Allocation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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