Correlation Between ProShares and ProShares Big
Can any of the company-specific risk be diversified away by investing in both ProShares and ProShares Big 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 and ProShares Big into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares SP Kensho and ProShares Big Data, you can compare the effects of market volatilities on ProShares and ProShares Big 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 with a short position of ProShares Big. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares and ProShares Big.
Diversification Opportunities for ProShares and ProShares Big
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares SP Kensho and ProShares Big Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Big Data and ProShares 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 SP Kensho are associated (or correlated) with ProShares Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Big Data has no effect on the direction of ProShares i.e., ProShares and ProShares Big go up and down completely randomly.
Pair Corralation between ProShares and ProShares Big
Given the investment horizon of 90 days ProShares is expected to generate 2.48 times less return on investment than ProShares Big. In addition to that, ProShares is 1.66 times more volatile than ProShares Big Data. It trades about 0.12 of its total potential returns per unit of risk. ProShares Big Data is currently generating about 0.49 per unit of volatility. If you would invest 3,834 in ProShares Big Data on August 30, 2024 and sell it today you would earn a total of 737.00 from holding ProShares Big Data or generate 19.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ProShares SP Kensho vs. ProShares Big Data
Performance |
| Timeline |
| ProShares SP Kensho |
| ProShares Big Data |
ProShares and ProShares Big Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares and ProShares Big
The main advantage of trading using opposite ProShares and ProShares Big positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares position performs unexpectedly, ProShares Big 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 Big will offset losses from the drop in ProShares Big's long position.| ProShares vs. ProShares SP Kensho | ProShares vs. ProShares Big Data | ProShares vs. Fidelity Covington Trust | ProShares vs. ProShares Smart Materials |
| ProShares Big vs. ProShares SP Kensho | ProShares Big vs. ProShares SP Kensho | ProShares Big vs. ProShares Smart Materials | ProShares Big vs. ProShares On Demand ETF |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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