Correlation Between ProShares Trust and VanEck UraniumNuclear
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and VanEck UraniumNuclear 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 VanEck UraniumNuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and VanEck UraniumNuclear Energy, you can compare the effects of market volatilities on ProShares Trust and VanEck UraniumNuclear 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 VanEck UraniumNuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and VanEck UraniumNuclear.
Diversification Opportunities for ProShares Trust and VanEck UraniumNuclear
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and VanEck is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and VanEck UraniumNuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck UraniumNuclear 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 VanEck UraniumNuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck UraniumNuclear has no effect on the direction of ProShares Trust i.e., ProShares Trust and VanEck UraniumNuclear go up and down completely randomly.
Pair Corralation between ProShares Trust and VanEck UraniumNuclear
Given the investment horizon of 90 days ProShares Trust is expected to generate 1.17 times more return on investment than VanEck UraniumNuclear. However, ProShares Trust is 1.17 times more volatile than VanEck UraniumNuclear Energy. It trades about 0.06 of its potential returns per unit of risk. VanEck UraniumNuclear Energy is currently generating about -0.11 per unit of risk. If you would invest 2,358 in ProShares Trust on December 3, 2024 and sell it today you would earn a total of 209.00 from holding ProShares Trust or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. VanEck UraniumNuclear Energy
Performance |
| Timeline |
| ProShares Trust |
| VanEck UraniumNuclear |
ProShares Trust and VanEck UraniumNuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and VanEck UraniumNuclear
The main advantage of trading using opposite ProShares Trust and VanEck UraniumNuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, VanEck UraniumNuclear 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 VanEck UraniumNuclear will offset losses from the drop in VanEck UraniumNuclear'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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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