Correlation Between DSJA and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both DSJA and ProShares Trust 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 DSJA and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and ProShares Trust , you can compare the effects of market volatilities on DSJA and ProShares Trust 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 DSJA with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and ProShares Trust.
Diversification Opportunities for DSJA and ProShares Trust
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and ProShares is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and DSJA 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 DSJA are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of DSJA i.e., DSJA and ProShares Trust go up and down completely randomly.
Pair Corralation between DSJA and ProShares Trust
If you would invest 2,865 in DSJA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding DSJA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
DSJA vs. ProShares Trust
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Trust |
DSJA and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and ProShares Trust
The main advantage of trading using opposite DSJA and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, ProShares Trust 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 Trust will offset losses from the drop in ProShares Trust's long position.The idea behind DSJA and ProShares Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ProShares Trust vs. AXS TSLA Bear | ProShares Trust vs. Tuttle Capital Short | ProShares Trust vs. ProShares Bitcoin Strategy | ProShares Trust vs. ProShares UltraShort Bloomberg |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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