Correlation Between ProShares Long and ProShares Online
Can any of the company-specific risk be diversified away by investing in both ProShares Long and ProShares Online 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 Long and ProShares Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Long OnlineShort and ProShares Online Retail, you can compare the effects of market volatilities on ProShares Long and ProShares Online 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 Long with a short position of ProShares Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Long and ProShares Online.
Diversification Opportunities for ProShares Long and ProShares Online
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and ProShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Long OnlineShort and ProShares Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Online Retail and ProShares Long 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 Long OnlineShort are associated (or correlated) with ProShares Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Online Retail has no effect on the direction of ProShares Long i.e., ProShares Long and ProShares Online go up and down completely randomly.
Pair Corralation between ProShares Long and ProShares Online
Given the investment horizon of 90 days ProShares Long is expected to generate 1.23 times less return on investment than ProShares Online. But when comparing it to its historical volatility, ProShares Long OnlineShort is 1.23 times less risky than ProShares Online. It trades about 0.07 of its potential returns per unit of risk. ProShares Online Retail is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,266 in ProShares Online Retail on August 28, 2024 and sell it today you would earn a total of 1,374 from holding ProShares Online Retail or generate 42.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Long OnlineShort vs. ProShares Online Retail
Performance |
| Timeline |
| ProShares Long Onlin |
| ProShares Online Retail |
ProShares Long and ProShares Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Long and ProShares Online
The main advantage of trading using opposite ProShares Long and ProShares Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Long position performs unexpectedly, ProShares Online 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 ProShares Online will offset losses from the drop in ProShares Online's long position.| ProShares Long vs. ProShares Online Retail | ProShares Long vs. Amplify Online Retail | ProShares Long vs. ProShares Decline of | ProShares Long vs. Global X E commerce |
| ProShares Online vs. VanEck Pharmaceutical ETF | ProShares Online vs. VanEck Biotech ETF | ProShares Online vs. VanEck Oil Services | ProShares Online vs. iShares Transportation Average |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |