Correlation Between ProShares Trust and First Republic
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and First Republic Bank, you can compare the effects of market volatilities on ProShares Trust and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and First Republic.
Diversification Opportunities for ProShares Trust and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of ProShares Trust i.e., ProShares Trust and First Republic go up and down completely randomly.
Pair Corralation between ProShares Trust and First Republic
If you would invest 77,550 in ProShares Trust on September 2, 2024 and sell it today you would earn a total of 16,550 from holding ProShares Trust or generate 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. First Republic Bank
Performance |
| Timeline |
| ProShares Trust |
| First Republic Bank |
ProShares Trust and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and First Republic
The main advantage of trading using opposite ProShares Trust and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| ProShares Trust vs. Promotora y Operadora | ProShares Trust vs. UnitedHealth Group Incorporated | ProShares Trust vs. Qulitas Controladora SAB | ProShares Trust vs. Hoteles City Express |
| First Republic vs. Grupo Financiero Banorte | First Republic vs. Grupo Financiero Inbursa | First Republic vs. Banco del Bajo |
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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