Correlation Between ProShares Trust and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both ProShares Trust 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 ProShares Trust and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and ProShares Trust , you can compare the effects of market volatilities on ProShares Trust 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 ProShares Trust with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and ProShares Trust.
Diversification Opportunities for ProShares Trust and ProShares Trust
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and ProShares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust 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 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 ProShares Trust i.e., ProShares Trust and ProShares Trust go up and down completely randomly.
Pair Corralation between ProShares Trust and ProShares Trust
Assuming the 90 days trading horizon ProShares Trust is expected to under-perform the ProShares Trust. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Trust is 1.79 times less risky than ProShares Trust. The etf trades about -0.11 of its potential returns per unit of risk. The ProShares Trust is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 191,359 in ProShares Trust on September 2, 2024 and sell it today you would earn a total of 26,841 from holding ProShares Trust or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. ProShares Trust
Performance |
| Timeline |
| ProShares Trust |
| ProShares Trust |
ProShares Trust and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and ProShares Trust
The main advantage of trading using opposite ProShares Trust and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust 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.| ProShares Trust vs. Promotora y Operadora | ProShares Trust vs. UnitedHealth Group Incorporated | ProShares Trust vs. Qulitas Controladora SAB | ProShares Trust vs. Hoteles City Express |
| ProShares Trust vs. The Select Sector | ProShares Trust vs. Promotora y Operadora | ProShares Trust vs. iShares Global Timber | ProShares Trust vs. SPDR Series Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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