Correlation Between ProShares Trust and Hoteles City
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Hoteles City 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 Hoteles City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Hoteles City Express, you can compare the effects of market volatilities on ProShares Trust and Hoteles City 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 Hoteles City. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Hoteles City.
Diversification Opportunities for ProShares Trust and Hoteles City
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between ProShares and Hoteles is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Hoteles City Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoteles City Express 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 Hoteles City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoteles City Express has no effect on the direction of ProShares Trust i.e., ProShares Trust and Hoteles City go up and down completely randomly.
Pair Corralation between ProShares Trust and Hoteles City
Assuming the 90 days trading horizon ProShares Trust is expected to generate 1.15 times more return on investment than Hoteles City. However, ProShares Trust is 1.15 times more volatile than Hoteles City Express. It trades about 0.44 of its potential returns per unit of risk. Hoteles City Express is currently generating about -0.04 per unit of risk. 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ProShares Trust vs. Hoteles City Express
Performance |
| Timeline |
| ProShares Trust |
| Hoteles City Express |
ProShares Trust and Hoteles City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Hoteles City
The main advantage of trading using opposite ProShares Trust and Hoteles City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Hoteles City 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 Hoteles City will offset losses from the drop in Hoteles City'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 |
| Hoteles City vs. CEMEX SAB de | Hoteles City vs. Grupo Financiero Banorte | Hoteles City vs. Grupo Bimbo SAB | Hoteles City vs. Fomento Econmico Mexicano |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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